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HomeMy WebLinkAboutSW8070653_Historical File_20071002 FATR `O�O W � OG Michael F.Easley,Governor William G.Ross Jr.,Secretary 3 I. ( r North Carolina Department of Environment and Natural Resources 0 -C" Coleen H.Sullins Director Division of Water Quality October 2, 2007 Jon T. Vincent Oyster Landing, LLC 1508 Military Cuttoff Rd. Ste. 302 Wilmington NC, 28403 Subject: Stormwater Permit No. SW8 070653 Oyster Landing Low Density Subdivision Permit Onsiow County Dear Vincent: The Wilmington Regional Office received a complete Stormwater Management Permit Application for Oyster Landing on September 5, 2007. Staff review of the plans and specifications has determined that the project, as proposed, will comply with the Stormwater Regulations set forth in Title 15A NCAC 2H.1000. We are forwarding Permit No. SW8 070653, dated October 2, 2007, for the construction of the subject project. This permit shall be effective from the date of issuance until rescinded and shall be subject to the conditions and limitations as specified therein, and does not supercede any other agency permit that may be required. If any parts, requirements, or limitations contained in this permit are unacceptable, you have the right to request an adjudicatory hearing upon written request within sixty (60) days following receipt of this permit. This request must be in the form of a written petition,y conforming to Chapter 150B of the North Carolina General Statutes, and filed with the Office of Administrative Hearings, P.O. Drawer 27447, Raleigh, NC 27611-7447. Unless such demands are made this permit shall be final and binding. If you have any questions, or need additional information concerning this matter, please contact either David Cox or me at (910) 796-7215. Since , Edward Beck Regional Supervisor Surface Water Protection Section ENB/dwc: S:IWQS\STORMWATER\PERMIT1070653.oct07 cc: Micheal C. Gallant, P.E. Onslow County Building Inspections David Cox Wilmington Regional Office Central Files N rthCaro} a ,Natmrally North Carolina Division of Water Quality 127 Cardinal Drive Extension Wilmington,NC 28405 Phone(910)796-7215 Customer Service Wilmington Regional Office Internet: www.ncwaterqualitv.org Fax (910)350-2004 1-877-623-6748 An Equal Opportunity/Affirmative Action Employer—50%Recycled/10%Post Consumer Paper State Stomiwater Management Systems Permit No.SW8 070653 STATE OF NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES DIVISION OF WATER QUALITY STATE STORMWATER MANAGEMENT PERMIT LOW DENSITY DEVELOPMENT In accordance with 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 Jon T. Vincent, Oyster Landing, LLC Oyster Landing S.R. 1518 County FOR THE Construction, operation and maintenance of a 25% low density subdivision in compliance with the provisions of 15A NCAC 2H .1000 (hereafter referred to as the "stormwater rules") and the approved stormwater management plans and specifications, and other supporting data as attached and on file with and approved by the Division of Water Quality and considered a part of this permit. The Permit shall be effective from the date of issuance until rescinded and shall be subject to the following specific conditions and limitations: I. DESIGN STANDARDS 1. Each of the 474 lots is limited to a maximum of 4,006 square feet of built-upon area, as indicated in the approved plans. CAMA regulations may reduce the allowable built-upon area for those lots within the AEC. 2. The overall tract built-upon area percentage for the project must be maintained at 25% per the requirements of Section .1005 of the stormwater rules. 3. Approved plans and specifications for projects covered by this permit are incorporated by reference and are enforceable parts of the permit. 4. Projects covered by this permit will maintain a minimum 30 foot wide vegetative buffer between all impervious areas and surface waters. 5. The only runoff conveyance systems allowed will be vegetated conveyances such as swales with minimum side slopes of 3:1 (H:V) as defined in the stormwater rules and approved by the Division. 6. All roof drains must terminate at least 30' from the mean high water mark. Page 2 of 5 State Stormwater Management Systems Permit No.SW8 070653 II: SCHEDULE OF COMPLIANCE 1. Swales and other vegetated conveyances shall be constructed in their entirety, vegetated, and be operational for their intended use prior to the construction of any built-upon surface. 2. During construction, erosion shall be kept to a minimum and any eroded areas of the swales or other vegetated conveyances will be repaired immediately. 3. The permittee shall at all times provide the operation and maintenance necessary to operate the permitted stormwater management systems at optimum efficiency to include: a. Inspections b. Sediment removal. c. Mowing, and re-vegetating of the side slopes. d. Immediate repair of eroded areas. e. Maintenance of side slopes in accordance with approved plans and specifications. 4. The permittee shall submit to the Director and shall have received approval for revised plans, specifications, and calculations prior to construction, for any modification to the approved plans, including, but not limited to, those listed below: a. Any revision to any of the items shown on the approved plans, including the stormwater management system, design concept, built-upon area, details, etc. b. Project name change. c. Transfer of ownership. d. Redesign or addition to the approved amount of built-upon area or to the drainage area. e. Further subdivision, acquisition, or selling of the project area. f. Filling in, altering or piping any vegetative conveyance shown on the approved plan. 5. The Director may determine that other revisions to the project should require a modification to the permit. 6. The permittee shall submit all information requested by the Director or his representative within the time frame specified in the written information request. 7. No piping shall be allowed except that minimum amount necessary to direct runoff beneath an impervious surface such as a road and that minimum amount needed under driveways to provide access to lots. 8. Unless specified elsewhere, permanent seeding requirements for the swales must follow the guidelines established in the North Carolina Erosion and Sediment Control Planning and Design Manual. 9. The permittee is responsible for verifying that the proposed built-upon area does not exceed the allowable built-upon area. Once the lot transfer is complete, the built-upon area may not be revised without approval from the Division of Water Quality, and responsibility for meeting the built-upon area limit is transferred to the individual property owner, provided that the permittee complies with the requirements of Section 11.11 and 11.12 of this permit. 10. Within 30 days of completion of the project, the permittee must certify in writing that the project's stormwater controls, and impervious surfaces have been constructed within substantial intent of the approved plans and specifications. Any deviation from the approved plans must be noted on the Certification. Page 3 of 5 State Stormwater Management Systems Permit No.SW8 070653 11. Deed restrictions are incorporated into this permit by reference and must be recorded with the Office of the Register of Deeds prior to the sale of any lot. Recorded deed restrictions must include, as a minimum, the following statements related to stormwater management: a. The following covenants are intended to ensure ongoing compliance with State Stormwater Management Permit Number SW8 070653, as issued by the Division of Water Quality under NCAC 2H.1000. b. The State of North Carolina is made a beneficiary of these covenants to the extent necessary to maintain compliance with the Stormwater Management Permit. c. These covenants are to run with the land and be binding on all persons and parties claiming under them. d. The covenants pertaining to stormwater may not be altered or rescinded without the express written consent of the State of North Carolina, Division of Water Quality. e. Alteration of the drainage as shown on the approved plans may not take place without the concurrence of the Division of Water Quality. f. The maximum built-upon area per lot is 4,006 square feet. This allotted amount includes any built-upon area constructed within the lot property boundaries, and that portion of the right-of-way between the front lot line and the edge of the pavement. Built upon area includes, but is not limited to, structures, asphalt, concrete, gravel, brick, stone, slate, and coquina, but does not include raised, open wood decking, or the water surface of swimming pools. g. Filling in or piping of any vegetative conveyances (ditches, swales, etc.) associated with the development except for average driveway crossings, is strictly prohibited by any persons. h. Lots within CAMA's Area of Environmental Concern may have the permitted built-upon area reduced due to CAMA jurisdiction within the AEC. i. Each lot will maintain a 30'wide vegetated buffer between all impervious areas and surface waters. j. All roof drains shall terminate at least 30' from the mean high water mark. 12. The permittee shall submit a copy of the recorded deed restrictions within 30 days of the date of recording. 13. If the permittee sets up an Architectural Review Committee or Board (ARC or ARB) to review plans for compliance with the restrictions, the plans reviewed must include all proposed built-upon area (BUA). Any approvals given by the ARC or ARB do not relieve the lot owner of the responsibility to maintain compliance with the permitted BUA limit. 14. The Director may notify the permittee when the permitted site does not meet one or more of the minimum requirements of the permit. Within the time frame specified in the notice, the permittee shall submit a written time schedule to the Director for modifying the site to meet minimum requirements. The permittee shall provide copies of revised plans and certification in writing to the Director that the changes have been made. Page 4 of 5 State Stormwater Management Systems Permit No.SW8 070653 15. All stormwater conveyances will be located in either dedicated right-of-way (public or private), recorded common areas or recorded drainage easements. The final plats for the project will be recorded showing all such required easements, in accordance with the approved plans. III. GENERAL CONDITIONS 1. Failure to abide by the conditions and limitations contained in this permit may subject the Permittee to an enforcement action by the Division of Water Quality, in accordance with North Carolina General Statutes 143-215.6A to 143-215.6C. 2. The permit issued shall continue in force and effect until revoked or terminated. 3. The permit may be modified, revoked and reissued or terminated for cause. The filing of a request for a permit modification, revocation and re-issuance, or termination does not stay any permit condition. 4. The issuance of this permit does not prohibit the Director from reopening and modifying the permit, revoking and reissuing the permit, or terminating the permit as allowed by the laws, rules, and regulations contained in Title 15A of the North Carolina Administrative Code, Subchapter 2H.1000; and North Carolina General Statute 143-215.1 et. al. 5. The permit is not transferable to any person or entity except after notice to and approval by the Director. The Director may require modification or revocation and re-issuance of the permit to change the name and incorporate such other requirements as may be necessary. A formal permit request must be submitted to the Division of Water Quality accompanied by the appropriate fee, documentation from both parties involved, and other supporting materials as may be appropriate. The approval of this request will be considered on its merits, and may or may not be approved. 6. The permittee is responsible for compliance with all permit conditions until such time as the Division approves the permit transfer request. Transfers to third parties by the permittee where the required documentation has not been submitted to and approved by the Division does not relieve the permittee of responsibility for transferring the permit. 7. The issuance of this permit does not preclude the Permittee from complying with any and all statutes, rules, regulations, or ordinances, which may be imposed by other government agencies (local, state and federal), which have jurisdiction. If any of those permits result in revisions to the plans, a permit modification must be submitted. 8. The permittee grants permission to DENR Staff to enter the property during business hours for the purposes of inspecting the stormwater management system and its components. 9. The permittee shall notify the Division of Water Quality of any name, ownership or mailing address changes within 30 days. Permit issued this the 2nd day of October, 2007. NO CAROLIN N RONMENTAL MANAGEMENT COMMISSION .2,1i --b eA for oleen H. Sullins Director Division of Water Quality By Authority of the Environmental Management Commission Page 5 of 5 • OFFICE USE ONLY Daeivej, Fee aid Permit Nu r /i4or1 L0, 0v State of North Carolina Department of Environment and Natural Resources Division of Water Quality STORMWATER MANAGEMENT PERMIT APPLICATION FORM This form may be photocopied for use as an original I. GENERAL INFORMATION 1. Applicants name (specify the name of the corporation,individual,etc.who owns the project): C7V/ 7 G .til)/A// I L L. C 2. Print Owner/Signing Official's name and title (person legally responsible for facility and compliance): ..,:CA/ T v,i7(.'ei)/ 3. Mailing Address for person listedte in item 2 above: ' i /5-0 li/f, o^� nee/4/ CGtGl/, Sk 302 City: Z0;./i.n 1/7/O l State: A/ Zip: 2(5)4/U3 Telephone Number:/( 19/0 ) 02 S c7/Of 4. Project Name (subdivision,facility,or establishment name-should be consistent with project name on plans, specifications,letters,operation and maintenance agreements,etc.): Z,V57-67,2 /.AA.14)/A,k 5. Location of Project (street address): i/e /7.2 e SR /5'8 City: SNCi/)S Fr Ze Y County: c2Af-st eW 6. Directions to project(from nearest major intersection): A/C /7 A 060 FGoC es76 ✓: is,€) i o ,i`' . se /57s- "bre, f 431.a4. 'J` CAA/ LEc :-AO Ord /$%e it 7. Latitude: 39'G 3/ 4' ' /f A Longitude: "77°079 "/S', 171/14.) of project 8. Contact person who can answer questions about the project: Name:-/Yl ic%% C / C, Cad/4.9 I i RC Telephone Number: ( 9/ t ) 3 28 - ../f8 IL PERMIT INFORMATION: 1. Specify whether project is (check one): _ New Renewal Modification RECEIVZD Form SWU-101 Version 3.99 Page 1 of 4 JUN 2 8 '2007 BY:� SO 4O706953 2. if this application is being submitted as r. result of a renewal or modification to an existing permit,list the • existing permit number A/14 and its issue date (if known) 3. Specify the type of project(check one): Low Density High Density Redevelop General Permit Other 4. Additional Project Requirements (check applicable blanks): CAMA Major )(Sedimentation/Erosion Control )( 404/401 Permit NPDES Stormwater Information on required state permits can be obtained by contacting the Customer Service Center at 1-877-623-6748. III. PROJECT INFORMATION i. In the space provided below,summarize how stormwater will be treated. Also attach a detailed narrative (o ie to two pag s) describing stormwater management for the project. • 19j FL jFL0d4,S 2. Stormwater runoff from this project drains to the e'F'- 'tAC River basin. 3. Total Project Area: 3/ 9 acres 4. Project Built Upon Area: '2 V. V % 5. How many drainage areas does the project have? 42 6. Complete the following information for each drainage area. If there are more than two.drainage areas in the project,attach an additional sheet with the information for each area provided in the same format as below. Basin Information Drainage Area I Drainage Area 2 Receiving Stream Name S ©NC Cte6-6x 72,&. 6,/ C,€C&K Receiving Stream Class .54 i l44141 .A i O� 14) Drainage Area 0 , /0 7 /3i< -c• 9, ail-3, 6,2 0 srExisting Impervious*Area • 20 ak Proposed Impervious*Area 75 7 , ?4 ,SF 0/ ®,3 9/ ,37 se %Impervious*Area.(total) o a Ef V e a/r - Impervious*Surface Area Drainage Area I Drainage Area 2 On-site Buildings 4f74 f Q e 0 NSF f1, /8',3/ ®o 0 , A- On-site Streets / 7 /i 9V0 6 c 5/3, 2. -s1 . On-site Parking 41 On-site Sidewalks/.t1,;4.5 ortz ` 576 ® - Other on-site, f1 / /1.0 i O i.2® S .a a e 6 ®®i" .5x' 1 Off-site Total: t76-- r fj; z, sir Total: gi, 09; 937 S *Impervious area is defined as the built upon area including, but not limited to,buildings,roads,parking areas, sidewalks,gravel areas, etc. Form SWU-101 Version 3.99 Page 2 of 4 7. How was the off-site impervious area listed above derived? IV. DEED RESTRICTIONS AND PROTECTIVE COVF.NANTR Th. following italicized deed restrictions and protective covenants are required to be recorded for all subs 'sions,outparcels and future development prior to the sale of any lot. If lot sizes vary significantly,a table listing e h lot number,size and the allowable built-upon area for each lot must be provided as an attachment. 1. The followin. ovenants are intended to ensure ongoing compliance with state stormwater management permit number as issued by the Division of Water Quality. These covenants may not be changed or deleted •i thout the consent of the State. 2. No more than square feet of any lot shall be covered by structures or impervious materials. Impervious materials inclu i.asphalt,gravel, concrete, brick,stone,slate or similar material but do not include wood decking or the water surface o imming pools. 3. Swales shall not be filled in,piped, o Ted except as necessary to provide driveway crossings. • • , 4. Built-upon area in excess of the permitter . '•unt requires a state stormwater management permit modification prior to construction. 5. All permitted runoff from outparcels or future devel•4ment shall be directed into the permitted stormwater control system. These connections to the stormwater controls tem shall be performed in a manner that maintains the Integrity and performance of the system as permitted. By your signature below,you certify that the recorded deed restri 'ons and protective covenants for this project shall include all the applicable items required above,that the coven. ,s will be binding on all parties and persons claiming under them,that they will run with the land,that the require. ovenants cannot be changed or deleted without concurrence from the State, and that they will be recorded prior to e sale of any lot. V. SUPPLEMENT FORMS The applicable state stormwater management permit supplement form(s) listed below must be submitted for each BMP specified for this project. Contact the Stormwater and General Permits Unit at (919) 733-5083 for the status and availability of these forms. Form SWU-102 Wet Detention Basin Supplement • Form SWU-103 Infiltration Basin Supplement Form SWU-104 Low Density Supplement Form SWU-105 Curb Outlet System Supplement Form SWU-106 Off-Site System Supplement Form SWU-107 Underground Infiltration Trench Supplement Form SWU-108 Neuse River Basin Supplement Form SWU-109 Innovative Best Management Practice Supplement Form SWU-l01 Version 3.99 Page 3 of 4 VI. SUBMITTAL REQUIREMENTS Only complete application packages will be accepted and reviewed by the Division of Water Quality(DWQ). A complete package includes all of the items listed below. The complete application package should be submitted to the appropriate DWQ Regional Office. 1. Please indicate that you have provided the following required information by initialing in the space provided next to each item. I i als • Original and one copy of the Stormwater Management Permit Application Form • One copy of the applicable Supplement Form(s) for each BMP • Permit application processing fee of$420 (payable to NCDENR) • Detailed narrative description of stormwater treatment/management • Two copies of plans and specifications,including: -Development/Project name -Engineer and firm -Legend -North arrow -Scale • Revision number&date -Mean high water line -Dimensioned property/project boundary -Location map with named streets or NCSR numbers - Original contours,proposed contours,spot elevations,finished floor elevations Details of roads,drainage features,collection systems,and stormwater control measures -Wetlands delineated,or a note on plans that none exist -Existing drainage (including off-site), drainage easements,pipe sizes,runoff calculations -Drainage areas delineated -Vegetated buffers (where required) VII. AGENT AUTHORIZATION If you wish to designate authority to another individual or firm so that they may provide information on your behalf,please complete this section. Designated agent(individual or firm): / 2/Cit&e/ C" c e //Q /7E /7.4 o � Mailing Address: /!D It 14()3 1 City: 0eR C#' V State: /1 C Zip: .z b'' "S Phone: 9/0 32 8 - 4.2 e _ Fax: ( 9/O ) VIII. APPLICANT'. CERTIFICATION I, (print or type name of.,erson listed in Gen: al Information,item 2) -.IPA/ T vi AlCEiti j certify that the informa ion included o his permit application form is, to the best of my knowledge,correct and that the project will be instructed in onformance with the approved plans,that the required deed restrictions and protecti covenan will be rec,rded,and that the proposed project complies with the requirements of 15A NCAC 2H.11 4,. Signature: A►�I L_ ( A Date: 611 d 7 � � Form SWU-101 Version 3.99 Page 4 of 4 Permit No. (to be provided by DWQ) State of North Carolina Department of Environment and Natural Resources Division of Water Quality STORMWATER MANAGEMENT PERMIT APPLICATION FORM LOW DENSITY SUPPLEMENT This form may be photocopied for use as an original A low density project is one that meets the appropriate criteria for built upon area and transports stormwater runoff primarily through vegetated conveyances. Low density projects should not have a discrete stormwater collection system as defined by 15A NCAC 2H .1002(18). Low density requirements and density factors can be found in 15A NCAC 2H .1005 through .1007. I. PROJECT INFORMATION Project Name : DVSTee LAtueviJ! 4 Contact Person: )ti►1 % tI/A. LT Phone Number: ("re ) 62.54 - /n/ Number of Lots: 'Y 7$1 Allowable Built Upon Area Per Lot*: Vp & Si *If lot sizes are not uniform, attach a table indicating the number of lots, lot sizes and allowable built upon area for each lot. The attachment must include the project name,phase,page numbers and provide area subtotals and totals. II. BUILT UPON AREA See the Stormwater Management Permit Application for specific language that must be recorded in the deed restrictions for all subdivisions. For uniform lot sizes, complete the following calculation in the space provided below where: • SA Site Area-the total project area above Mean High Water. Wetlands may be excluded when the development results in high density pockets. • DF Density Factor-the appropriate percent built upon area divided by 100. • RA Road Area-the total impervious surface occupied by roadways. • OA Other Area-the total area of impervious surfaces such as clubhouses, tennis courts, sidewalks, etc. • No. Lots -the total number of lots in the subdivision. • BUA/Lot-the computed allowable built upon area for each lot including driveways and impervious surfaces located between the front lot line and the edge of pavement. Form SWU-104 Rev 3.99 Page 1 of 2 a (SA xDF)-RA-OA = BUA No. Lots Lot Calculation: 0,2i 4/5-e, 75V X , .2 Vii) - .,e,5-, 3.73 - 1/6-43-6 6 741 LJ TS' o a s'�' £4 = / 2 /5®; 7541sr OF _ 1-/aV % - 4s3-; .322 6F0 0.9 = -9 3/ 570® 5F= ( src iod 76- 7 4;n/&V , v , v r�,e ,I) v&-ier_) HL REQUIRED ITEMS CHECKLIST Initial in th; sp. e provided to indicate that the following requirements have been met and supporting documenta+'4 n i provided as necessary. If the applicant has designated an agent on the Stormwater Managem- ,t P- i it Application Form,the agent may initial below. Applic ; • '' i Is a. A 30 foot vegetative buffer is provided adjacent to surface waters. Projects in the Neuse IRiver basin may require additional buffers. b. Deed restriction language as required on form SWU-101 shall be recorded as a restrictive covenant. A copy of the recorded document shall be provided to DWQ within 30 days of platting and prior to sale of any lots. J c. Built upon area calculations are provided for the overall project and all lots. Vd. Project conforms to low density requirements within the ORW AEC(if applicable). [15A NCAC 2H.1007(2)(b)] Fonn SWU-104 Rev 3.99 Page 2 of 2 In accordance with Title 15 NCAC 2H.1000, the Coastal Stormwater Management Regulations, deed restrictions and protective covenants are required for Low Density Residential Subdivisions where lots will be subdivided and sold. Deed restrictions and protective covenants are necessary to ensure that the development maintains a "built-upon" area consistent with the applicable regulation governing the density level. I, JoA/ 7:- ✓INC r acknowledge and affirm by my signature below, that I will cause the following deed restrictions and protective covenants to be recorded for Olisrew CAN '.vv 1 prior to the sale of any lot: 1. The following covenants are intencteel to e s e ongoing compliance with State Stormwater Management Permit Numberil) / V , as issued by the Division of Water Quality under NCAC 2H.1000. 2. The State of North Carolina is made a beneficiary of these covenants to the extent necessary to maintain compliance with the stormwater management permit. 3. These covenants are to run with the land and be binding on all persons and parties claiming under them. 4. The covenants pertaining to stormwater may not be altered or rescinded without the express written consent of the State of North Carolina, Division of Water Quality. 5. Alteration of the drainage as shown on the approved plan may not take place without the concurrence of the Division of Water Quality. 6. The maximum allowable built-upon area per lot is V006- square feet. This allotted amount includes any built-upon area constructed within the lot property boundaries, and that portion of the right-of-way between the front lot line and the edge of the pavement. Built upon area includes, but is not limited to, structures, asphalt, concrete, gravel, brick, stone, slate, and coquina, but does not include raised, open wood decking, or the water surface of swimming pools. 7. In the case of a lot within CAMA's regulated AEC, where the Division of Coastal Management calculates a diffc ent maximum allowable built-upon area for that lot than is shown herein, the governing maxim m built-upon area for that lot shall be the most restrictive of the two. 8. Filling in or piping f any vegetati e conveyances (ditches, swales, etc.) associated with the development excep for average •riveway crossings, is strictly prohibited by any persons. 9. Each lot W I maintai b a 30'wide egetated buffer between all impervious areas and surface waters. 10. All roof dra . shall terminate - least 30'from the mean high water mark of surface waters. Signature: �`'I, i I Date: 6/l01/(/7 1V I, LI. i\#< 1� , a Notary Public in the State of i\l•' 1►A, County of Nv.,h3 1.-\01/4 do hereby certify hat ` \J ' N personally appeared before me this the I day of_cj �� , 20 , and acknowledge the due execution of the foregoing instrument. Witness my hand and official seal, SEAL V\ . igna�re My Commission expires 1 d - - Qg, ccD D» I W I o j s V v ?-oca s3 DRAINAGE AREA 1 TOTAL WETLANDS 100' WETLANDS OFFSET 3,580,944SF = 82.2 AC 1,254,453 SF = 28.7 AC 1,080,288 SF = 24.8 AC 1. 28.7 AC / 82.2 AC = 34.9% 025%) 82.2 AC - 28.7 AC = 53.5 AC UPLANDS 53.5 AC / 0.75 = 71.3 AC i I 2. 82.2 AC - 28.7 AC = 53.5 AC UPLANDS 53.5 AC +24.8 AC = 78.3 AC 3. 78.3 AC > 71.3 AC PROJECT AREA USED FOR DENSITY CALCULATI❑NS FOR DRAINAGE 1 = 71.3 AC * SEE STORM WATER APPLICATION DRAINAGE AREA 2 TOTAL WETLANDS 100' WETLANDS OFFSET 10,317,197 SF = 236.8 AC 3,241,881.7 SF = 74.4 AC 2,269,476 SF = 52.1 AC 1. 74.4 AC / 236.8 AC = 31.4% (>25%) 236.8 AC - 74.4 AC = 162.4 AC UPLANDS 162.4 AC / 0.75 = 216.5 AC 2. 236.8 AC - 74.4 AC = 162.4 AC UPLANDS 162.4 AC + 52.1 AC = 214.5 AC 3. 216.5 AC > 214.5 AC PROJECT AREA USED FOR DENSITY CALCULATIONS FOR DRAINAGE 2 = 214.5 AC *SEE STORM WATER APPLICATION -6, o • sM Michael C. Gallant PE,PA Engineering/Consulting/Design September 5, 2007 NCDENR-DWQ 127 Cardinal Dr. Ext Wilmington,NC 28405 Attn: David Cox Re: Oyster Landing David, We at Michael C. Gallant, P.E., P.A. submit the additional required information in accordance with your letter dated August 28, 2007. This packet contains the following: • A wetlands survey map submitted to the ACOE. • The Operating Agreement of Oyster Landing, LLC. Also, the wetland policy calculations are noted on the plans as stated in Gary's and your phone conversation on August 29, 2007. If you have any questions regarding this project please call me at 910.328.2188. Sincerely, Michae . G ant, PE RECEIVED S E P 4 5 2007 gallantmc@yahoo.com tel 910.328.2188 fax 910.328.2230 P.O. Box 4039 Surf City, NC 28445 pF `NATF,9 p Michael F.Easley,Governor Ctign ti William G.Ross Jr.,Secretary North Carolina Department of Environment and Natural Resources > —I Coleen H.Sullins Director Division of Water Quality August 28, 2007 Jon T. Vincent Oyster Landing, LLC 1508 Military Cuttoff Rd. Ste. 302 Wilmington NC, 28403 Subject: Request for Additional Information Stormwater Project No. SW8 070653 Oyster Landing Onslow County Dear Mr. Vincent: The Wilmington Regional Office received a Stormwater Management Permit Application for Osyster on June 28, 2007. A preliminary review of that information has determined that the application is not complete. The following information is needed to continue the stormwater review 1. Please submit the wetland survey map submitted to the ACOE for the project titled, Oyster Landing. 2. Please submit the wetland policy calculations that is demonstrated on the attached sheet for the project titled Oyster Landing. 3. Please submit Articles of Organization that permit Jon Vincent to authority to sign; at the present time Authorized Agents are not accepted. Please note that this request for additional information is in response to a preliminary review. The requested information should be received by this Office prior to September 28, 2007, or the application will be returned as incomplete. The return of a project will necessitate resubmittal of all required items, including the application fee. If you need additional time to submit the information, please mail or fax your request for a time extension to the Division at the address and fax number at the bottom of this letter. The request must indicate the date by which you expect to submit the required information. The Division is allowed 90 days from the receipt of a completed application to issue the permit. The construction of any impervious surfaces, other than a construction entrance under an approved Sedimentation Erosion Control Plan, is a violation of NCGS 143-215.1 and is subject to enforcement action pursuant to NCGS 143-215.6A. N""o�-hhCarolina Aatura!!r/ North Carolina Division of Water Quality 127 Cardinal Drive Extension Wilmington,NC 28405 Phone(910)796-7215 Customer Service Wilmington Regional Office Internet: www.ncwaterquality.org Fax (910)350-2004 1-877-623-6748 An Equal Opportunity/Affirmative Action Employer—50%Recycled/10%Post Consumer Paper Jon T. Vincent August 28, 2007 Stormwater Application No. SW8 070653 Please reference the State assigned project number on all correspondence. Any original documents that need to be revised have been sent to the engineer or agent. All original documents must be returned or new originals must be provided. Copies are not acceptable. If you have any questions concerning this matter please feel free to call me at (910) 796-7215. Sincerely, /. (7471_ U V David x Environmental Specialist ENB/dwc:S:1WQS\STORMWATER\ADDI NFO120071070 cc: Michael C. Gallant David Cox V►liRO Page 2 of 2 The most current policy (October 5, 2006) regarding the amount of wetlands that can be included in the site area is dictated by whichever of the following two calculation methods yields the least amount of site area: Method 1: Calculate the acreage of the wetlands. Divide the wetland acreage by the total site acreage. If the result is 25% or less, then the total project area is the total site acreage. If the result is more than 25%, then calculate the amount of wetland to include such that no more than 25% of the site area acreage consists of wetlands in this manner: subtract the entire wetlands area from the site area to get the uplands area, then divide the uplands area by 0.75. Method 2: Calculate the area of a 100 foot wide strip of wetlands measured from the uplands area into the wetland. Compare the two numbers, and choose the one that yields the smallest project area. EXAMPLE A: Total site area = 55 acres Total wetland area = 15 acres 0.100' wide strip of wetland area = 5 acres Method 1: 15 acres wetlands /55 acres site = 27.3% (> 25%) 55 acres site - 15 acres wetlands = 40 acres uplands Project area for calculating density 40 / .75 = 53.33 acres Method 2: 55 - 15 = 40 Project area for calculating density 40 + 5 = 45 acres Since 45 < 53.33, use area derived via Method 2 to calculate the allowable density. EXAMPLE B: Total site area = 55 acres Total wetland area = 10 acres 0,100' wide strip of wetland area 5 acres Method 1: 10 / 55 = 18.2% (<25%) Project area for calculating density 55 acres Method 2: 55- 10 = 45 acres Project area for calculating density - 45 + 5 = 50 acres Since 50 < 55, use area derived via Method 2 to calculate the allowable density. EXAMPLE C Total Site Area = 55 acres Total Wetland Area = 40 acres 100' strip of wetland area = 15 acres Method 1: 40 / 55 = 73% (>25%) 55 -40 = 15 acres Project area for calculating density = 15 / .75 = 20 acres Method 2: 55-40 = 15 Project area for calculating density = 15 + 15 = 30 acres Since 20 < 30, use area derived via Method 1 for calculating the allowable density. The 100' wetland strip is measured from the 401/404 line waterward (into the wetlands) of the project for a distance of 100', or to the mean high water (MHW) line or to the property line, whichever comes first. No credit for wetlands located outside of the property line or beyond the MHW line can be given. By definition, the project area includes only that area above the MHW Line. S:1WQS\STORMWATERIFORMS\WETLANDS POLICY AND EXAMPLE CALCS Last updated 10/05/2006 e - OPERATING AGREEMENT OF OYSTER LANDING,LLC THIS OPERATING AGREEMENT (this "Agreement") of OYSTER LANDING, LLC, (the "Company")a Limited Liability Company organized pursuant to North Carolina Limited Liability Company Act, is executed effective as of the/.l Y� day of April, 2007,by and among the Company and the persons executing this Agreement as the initial Members(as defined below). ARTICLE I-DEFINITIONS 1.1 Definitions. The following terms used in this Agreement shall have the following meanings(unless otherwise expressly provided herein): (a) "Act" means the North Carolina Limited Liability Company Act,as the same may be amended from time to time. (b) "Adjusted Capital Account"means,with respect to a Member,the balance in such Member's Capital Account at the end of the relevant fiscal year,as determined in accordance with Treasury regulation Section 1.704-1(b)(2)(iv). (c) "Articles of Organization"means the Articles of Organization of the Company filed with the Secretary of State,as amended or restated from time to time. (d) "Capital Account" means for each Member the account established pursuant to Section 8.2 hereof and maintained in accordance with the provisions of this Agreement. (e) "Capital Contribution"means any contribution to the capital of the Company in cash or property by a Member whenever made and"Capital Unit"shall represent the unit value assigned to each capital contribution which shall be one unit for each$1,000.00 contribution. (f) "Code" means the Internal Revenue Code of 1986, as amended from time to time (and any corresponding provisions of succeeding law). (g) "Distributable Cash"means,with respect to the Company for a period of time,all funds of the Company on hand or in bank accounts of the Company as, in the discretion of the Managers, is available for distribution to the Members after provision has been made for(i)payment of all operating expenses of the Company as of such time, (ii)provision for payment of all outstanding and unpaid current obligations of the Company as of such time, and (iii) provision for such reserves as the Managers deem necessary or appropriate for Company operations. (h) "Fiscal Year" means the calendar year, provided that the first Fiscal Year of the Company shall commence on March 8,2007,and continue through December 31,2007. (i) "Income"means,for each Fiscal Year or other period,each item of income and gain as determined,recognized and classified for federal income tax purposes,provided that any income or gain that is exempt from federal income tax shall be included as if it were an item of taxable income. l lr/` (j) "Initial Capital Contribution" means the initial contribution to the capital of the Company made by a Member pursuant to Section 8.1(a)of this Agreement. (k) "Loss"means,for each Fiscal Year or other period,each item of loss or deduction as determined, recognized and classified for federal income tax purposes, increased by (i) expenditures described in Section 705(a)(2)(B)of the Code,(ii)expenditures contemplated by Section 709 of the Code (except for amounts with respect to which an election is properly made under Section 709(b)of the Code), and(iii)expenditures resulting in a deduction for a loss incurred in connection with the sale or exchange of Company property that is disallowed to the Company under Section 267(a)(l) or Section 707(b). (1) "Maiority"means,with respect to any referenced group of Managers,a combination of any of such Managers constituting more than fifty percent (50%) of the number of Managers of such referenced group who are then elected and qualified. (m) "Majority of Interest"means,with respect to any referenced group of Members,a combination of any of such Members who, in the aggregate, own more than fifty percent (50%) of the Membership Interests owned by all of such referenced group of Members. (n) "Manager"means each entity designated as a Manager on Schedule II,hereto,or any other Person that succeeds such Manager in his capacity as Manager or any other Persons who are elected to act as Managers of the Company as provided herein. "Managers"refers to such Persons as a group. (o) "Member"means each entity designated as a Member of the Company on Schedule I hereto,or any additional Member admitted as a Member of the Company in accordance with ARTICLE X. "Members" refers to such Persons as a group. (p) "Membership Interest" means all of a Member's rights in the Company, including without limitation, the Member's share of the profits and losses of the Company, the rights to receive distributions of the Company's assets,any right to vote and any right to participate in the management of the Company as provided in the Act and this Agreement.•As to any Member,Membership Interest shall mean the percentage set forth opposite such Member's name on Schedule I hereto. (q) "Net Income"and"Net Loss"means,for each Fiscal Year or other relevant period, (i)the excess of the income for such period over the Loss for such period,or(ii)the excess of the Loss for such period over the Income for such period,respectively;provided,however,that Net Income and Net Loss for a Fiscal Year or other relevant period shall be computed by excluding from such computation any Income specially allocated under Section 8.1. (r) "Person"means an individual,a trust,an estate,or a domestic corporation,a foreign corporation,a professional corporation,a partnership,a limited partnership,a limited liability company,a foreign limited liability company,an unincorporated association,or another entity. (s) "Secretary of State" means the Secretary of State of North Carolina. (t) "Treasury Regulations" means the Income Tax Regulations and Temporary Regulations promulgated under the Code,as such regulations may be amended from time to time(including corresponding provisions of succeeding regulations). -2- ARTICLE II-FORMATION OF THE COMPANY 2.1 Formation. The Company was formed on March 8,2007, upon the filing with the Secretary of State of the Articles of Organization of the Company. In consideration of the mutual promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,the parties hereto agree that the rights and obligations of the parties and the administration and termination of the Company shall be governed by this Agreement,the Articles of Organization and the Act. 2.2 Name. The business and affairs of the Company shall be conducted under the name OYSTER LANDING,LLC. The name of the Company may be changed from time to time by amendment of the Articles of Organization. The Company may transact business under an assumed name by filing an assumed name certificate in the manner prescribed by applicable law. 2.3 Registered Office and Registered Agent. The Company's registered office shall be 1508 Military Cutoff Road,Suite 302,Wilmington,New Hanover County,North Carolina 28403,and the name of its initial registered agent at such address shall be Jon T.Vincent. 2.4 Principal Place of Business. The principal place of business of the Company within the State of North Carolina shall be 1508 Military Cutoff Road,Suite 302,Wilmington,NC 28403. The Company may locate its place(s) of business and registered office at any other place or places as the Managers may from time to time deem necessary or advisable. 2.5 Term. There shall be no limit to the duration of the limited liability company,as specified in the Company's Articles of Organization,unless the Company is earlier dissolved and its affairs wound up in accordance with the provisions of this Agreement or the Act. 2.6 Purposes and Powers. (a) The Company may engage in any lawful business for which limited liability companies may be organized under the Act unless a more limited purpose is stated in the Articles of Organization. (b) The Company shall have any and all powers which are necessary or desirable to carry out the purposes and business of the Company, to the extent the same may be legally exercised by limited liability companies under the Act. The Company shall carry out the foregoing activities pursuant to the arrangements set forth in the Articles of Organization and this Agreement. 2.7 Nature of Members'Interests. The interests of the Members in the Company shall be personal property for all purposes. Legal title to all Company assets shall be held in the name of the Company. Neither any Member nor a successor,representative or assign of such Member,shall have any right,title or interest in or to any Company property or the right to partition any real property owned by the Company. Interests may be evidenced by a certificate of membership interest issued by the Company,in such form as the Managers may determine. ARTICLE III-RIGHT AND DUTIES OF MANAGERS 3.1 Management. The business and affairs of the Company shall be managed by the Managers. In addition to the powers and authorities expressly conferred by this Agreement upon the Managers,the Managers shall have full and complete authority,power and discretion to manage and control the business of the Company,including but not limited to operating company property,leasing the same upon -3- such conditions and terms as the managers deem appropriate to make all decisions regarding those matters and to perform any and all other acts or activities customary to or incidental to the management of the Company's business, except only as to those acts and things as to which approval by the Members is expressly required by the Articles of Organizations,this Agreement,the Act or other applicable law. At any time when there is more than one Manager(i)any one Manager may take any action permitted to be taken by the Managers,unless the approval of more than one of the Managers is expressly required pursuant to this agreement or the Act and (ii) the Managers may elect one or more officers who may but need not be Members or Managers of the Company,with such titles,duties and compensation as may be designated by the Managers,subject to applicable restrictions specifically provided in this Agreement or contained in the Act. 3.2 Number and Qualifications. There shall initially be three (3)Managers of the Company,who may be a Member who executed and filed the Articles of Organization of the Company. The names and consent of the Managers to serve as such shall be evidenced by his execution of this Agreement, or on Schedule II attached hereto and made a part hereof,as amended upon any change of Mangers. The number of Managers of the Company may be fixed from time to time by the affirmative vote of a Majority in Interest of all of the Members,but in no instance shall any decrease in the number of Managers have the effect of shortening the term of any incumbent Manager. Managers need not be residents of the State of North Carolina or Members of the Company. 3.3 Election and Term of Office. Managers shall be elected at the annual meeting of the Members (except as provided in Sections 3.5 and 3.6). Each Manager shall hold office until the Manager's successor shall have been elected and qualified,or until the death or dissolution of such Manager, or until his or its resignation or removal from office in the manner provided in this Agreement or in the Act. 3.4 Resignation. Any Manager of the Company may resign at any time by giving written notice to all of the Members of the Company. The resignation of any Manager shall take effect upon receipt of notice thereof or at such later time as shall be specified in such notice, and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. The resignation of either or both of the two persons signing the original Articles of Organization will not dissolve the LLC. 3.5 Removal. At any special meeting of the Members called expressly for that purpose, all or any lesser number of Managers may be removed at any time, either with or without cause, by the affirmative vote of a Majority in Interest of all the Members then entitled to vote at any election of Managers. In case any vacancy so created shall not be filled by the Members at such meeting, such vacancy may be filled by the Managers as provided in Section 3.6. 3.6 Vacancies. Any vacancy occurring for any reason in the Managers of the Company may be filled by the affirmative vote of a Majority of Managers, except for a vacancy occurring in the Managers by reason of an increase in the number of Managers, which shall be filled by an affirmative vote of a Majority in Interest of all the Members at an annual meeting of Members or at a special meeting of Members called for that purpose. 3.7 Inspection of Books and Records. Any Manager shall have the right to examine all books and records of the Company for a purpose reasonably related to such Manager's position as a Manager. 3.8 Compensation. The compensation of the Managers of the Company shall be fixed from time to time by an affirmative vote of a Majority of Interest of the Members or by contract approved by an affirmative vote of a Majority in Interest of the members, and no Manager shall be prevented from receiving such salary by reason of the fact that he is also a Member of the Company. -4- 3.9 Committees of the Managers. The Managers,by resolution,may designate from among the Managers one or more committees, each of which shall be comprised of one or more of the Managers.and may designate one or more of the Managers as alternate members of any committee,who may, subject to any limitations imposed by the Managers,replace absent or disqualified Managers at any meeting of this committee. Any such committee,to the extent provided in such resolution or in this Agreement,shall have and may exercise all of the authority of the Managers, subject to any restrictions contained in this Agreement or Act. 3.10 Call of Funds. The Members recognize that the income produced may be insufficient to pay all costs. If, in the judgment of all Members, additional funds are required to pay such costs, the additional funds shall be called for by the Manager in proportion to each Member's ownership percentage. As used above, the term "costs" shall include, without limitation: principal and interest payments on Company loans;costs of repair,maintenance,and improvements; insurance premiums;taxes, utilities and any other normal cost of doing business. With regards to this provision,an automatic call for funds will be allowed by the Manager of the Company if working capital funds fall below$10,000(defined as cash in bank less all current obligations due within thirty days). ARTICLE IV-MEETING OF MANAGERS 4.1 Place of Meeting. The Managers of the Company may hold their meetings,both regular and special,at any place within or without the State of North Carolina. 4.2 Notice of Meeting. The first meeting of newly elected Managers shall be held immediately following the adjournment of the annual meeting of the Members. The Managers may otherwise meet at such intervals and at such time and place as they shall schedule. Special meetings of the Managers may be called at any time by no less than one-third of the then serving Managers for any purpose or purposes. Notice of such special meetings, unless waived by attendance or by written consent to the holdings of the special meeting, shall be given at least five(5)days before the date of such meeting to all Managers not calling the meeting. Notice of such special meeting shall state that it shall be held at the principal place of business of the Company, the date and hour of the special meeting,and its purpose or purposes. Absent the written consent of a Majority of the Managers to take other action, the business transacted at such special meeting shall be limited to such purpose or purposes as stated in the notice. 4.3 Action by Managers;Quorum;Voting;Action Without Meeting. (a) A Majority of the Managers shall be necessary to constitute a quorum for the transaction of business. Every act or decision done or made by a Majority of the Managers present at a meeting duly held at which a quorum is present shall be regarded as the act of the Company,unless a greater number is required by law or by the Articles of Organization. (b) Managers may participate in any meeting of the Managers by means of conference telephone or similar communications equipment,provided all persons participating in the meeting can hear one another,and such participation in a meeting shall constitute presence in person at the meeting. (c) All votes required of Managers hereunder may be by voice vote unless a written ballot is requested,which request may be made by any one Manager. —5— (d) Any action which under any provision of the Act or this Agreement is to be taken at a meeting of the Managers may be taken without a meeting by written consent signed by all Managers who would be entitled to vote upon such action at a meeting. Such written consent must be kept with the records of the Company. 4.4 Adjournment. A Majority of the Managers present may adjourn any Managers' meeting to meet again at a stated day and hour or until the time fixed for the next regular meeting of the Managers. ARTICLE V-MEMBERS 5.1 Names and Addresses of Members. The names, addresses and Membership Interests of the Members are as reflected in Schedule I attached hereto and made a part hereof, which Schedule shall be amended by the Company as of the effectiveness of any transfer or subsequent issuance of any Membership Interest. 5.2 Admission of Members. (a) In the case of a Person acquiring a Membership Interest directly from the Company, the Person shall become a Member with respect to such Membership Interest upon compliance with the requirements of ARTICLE X and making the Capital Contribution specified in Section 8.1. (b) An assignee of a Membership Interest shall become a Member on compliance with requirements of ARTICLE X. (c) Any Person may become a Member unless such Person lacks legal capacity or is otherwise prohibited from being admitted by applicable law. ARTICLE VI-MEETINGS OF MEMBERS 6.1 Annual Meetings of Members. An annual meeting of the Members will be held at such time and date at the principal office of the Company or at such other place within or without the State of North Carolina as shall be designated by the Managers from time to time and stated in the notice of the meeting. The purpose of the annual meeting need not be enumerated in the notice of such meeting. 6.2 Special Meetings of Members. Special meetings of the Members may be called by the Managers or by the holders of not less than ten percent (10%) of all the Membership Interests. Business transacted at all special meetings shall be confined to the purpose or purposes stated in the notice. 6.3 Notice of Meetings of Members. Written notice stating the place,day and hour of the meeting and,additionally in the case of special meetings,stating the principal place of business of the Company as the location and the purpose or nurnoses for which the meeting is called,shall be delivered not less than three(3)nor more than sixty(60)days before the date of the meeting,to each Member of record entitled to vote at such meeting. 6.4 Record Date. For the purpose of determining members entitled to notice of or to vote at any meeting of Members or any adjournment thereof,or Members entitled to receive payment of any -6- distribution,or to make a determination of Members for any other purpose,the date on which notice of the meeting is mailed or the date on which such distribution is declared,as the case may be,shall be the record date for such determination of Members. When a determination of Members entitled to vote at any meeting of Members had been made as provided in this Section,such determination shall apply to any adjournment thereof. 6.5 Quorum. A Majority in Interest of the Members shall constitute a quorum at all meetings of the Members,except as otherwise provided by law or this Agreement. Once a quorum is present at the meeting of the members, the subsequent withdrawal from the meeting of any Member prior to adjournment or the refusal of any Member to vote shall not affect the presence of a quorum at the meeting. If,however,such quorum shall not be present at the opening of any meeting of the Members,the members entitled to vote at such meeting shall have the power to adjourn the meeting from time to time,without notice other than announcement at the meeting,until the holders of the requisite amount of Membership Interests shall be present or represented. 6.6 Actions by Member Other than for Election of Managers. Except for a matter for which the affirmative vote of the holders of a greater portion of the Membership Interests entitled to vote is required by law, the Articles of Organization or this Agreement, the act of Members shall be the affirmative vote of a Majority in Interest of all the Members represented and voting at the meeting. All actions of the Members provided for herein may be taken by written consent without a meeting. Any such action which may be taken by the Members without a meeting shall be effective only if the consents are in writing, set forth the action so taken, and are signed by all Members eligible to vote on such action. Members may participate in any meeting of the Members by means of a conference telephone or similar communications equipment,provided all persons participating in the meeting can hear one another,and such participation in a meeting shall constitute presence in person at the meeting. 6.7 Action by Members to Elect Managers. For purposes of voting on the election of Managers,Managers shall be elected at any meeting of the Members at which a quorum is present,by a plurality of the Membership Interests represented and voting at the meeting. 6.8 List of Members Entitled to Vote. The Managers shall make,at least three(3) days before each meeting of Members,a complete list of the Members entitled to vote at such meeting,or any adjournment of such meeting,arranged in alphabetical order, with the address of and the Membership Interests held by each which list,for a period of three(3)days prior to such meeting,shall be kept on file at the registered office of the Company and shall be subject to inspection by any Member at any time during usual business ours. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to inspection by any Member during the continuance of the meeting. However,failure to comply with the requirements of this Section shall not affect the validity of any action taken at such meeting. 6.9 Registered Members. The Company shall be entitled to treat the holder of record of any Membership Interest as the holder in fact of such Membership Interest for all purposes, and accordingly shall not be bound to recognize any equitable or other claim to or interest in such Membership Interest on the part of any other person,whether or not it shall have express or other notice of such claim or interest,except as expressly provided by this Agreement or the laws of North Carolina. 6.10 Consent to Operations. Except for those actions previously allocated to the Managers in Article III or elsewhere in this Agreement,all other actions shall require majority approval of -7- the Members, provided, however, the Members expressly authorize the Managers with consent of the Members holding a majority in interest to: (a)Execute on behalf of the Company any,contract of sale,deed,deed of trust,mortgage, note,security agreement or other conveyance debt or security instrument. (b) Assign, transfer, pledge, compromise or release any of the claims of or debts due the Company. (c)Change the business office,registered office or registered agent of the Company. (d)Make or revoke any election available to the Company under the Code. ARTICLE VII-LIMITATION OF LIABILITY AND INDEMNIFICATION OF MANAGERS AND MEMBERS 7.1 Limitation of Liability. No Manager or Member of the Company shall be liable to the Company or its Members for monetary damages for an act or omission in such person's capacity as a Manager or Member,except as provide in the Act for(i)acts or omissions which a Manager knew at the time of the acts or omissions were clearly in conflict with the interests of the Company,(ii)any transaction from which a Manager derived an improper personal benefit,or(iii)acts or omissions occurring prior to the date this provision becomes effective. If the Act is amended to authorize action further eliminating or limiting the liability of Managers and Members,then the liability of a Manager or Member of the Company shall be eliminated or limited to the fullest extent permitted by the Act as so amended. Any repeal or modification of this section shall not adversely affect the right or protection of a Manager or Member existing at the time of such repeal or modification. 7.2 Indemnification. The Company shall indemnify the Managers and Members to the fullest extent permitted or required by the Act,as amended from time to time, including costs of defense including reasonable attorneys fees,and the Company may advance expenses incurred by the Manager or Member upon the approval of the Managers and the receipt by the Company of an undertaking by such Manager or Member to reimburse the Company unless it shall ultimately be determined that such Manager or Member is entitled to be indemnified by the Company against such expenses. The Company may also indemnify its employees and other representatives or agents up to the fullest extent permitted under the Act or other applicable law, including costs of defense including reasonable attorneys fees, provided that the indemnification in each such situation is first approved by Members owning a Majority in Interest. 7.3 Other Rights. The indemnification provided by this Agreement shall(i)be deemed exclusive of any other rights to which a person seeking indemnification may be entitled under any statute, agreement,vote of Members.or disinterested Managers,or otherwise,both as to action in official capacities and as to action in another capacity while holding such office,(ii)continue as to a person who ceases to be a Manager or Member, (iii) inure to the benefit of the estate, heirs, executors, administrators or other successors of an indemnitee,and(iv)not be deemed to create any rights for the benefit of any other person or entity. 7.4 Report of Members. The details concerning any action to limit the liability, indemnify or advance expense to a Manager,Member or other,taken by the Company shall be reported in -8- writing to the Members with or before the notice or waiver of notice of the next Members'meeting or with or before the next submission to Members of a consent to action without a meeting or,if sooner,separately within ninety(90)days immediately following the date of the action. ARTICLE VIII-CONTRIBUTIONS TO CAPITAL AND CAPITAL ACCOUNTS; LOANS 8.1 Capital Contribution;Loans. (a) Upon execution of this Agreement,each Member agrees to contribute cash to the Company in the amount set forth as the Initial Capital Contribution of such Member on Schedule I,attached hereto. (b) If the Managers determine that the Initial Capital Contributions are insufficient to carry out the purposes of the Company, the Managers may request that the Members make additional contributions to the capital of the Company. If a Majority in Interest of the Members approve such request, then each of the Members shall be obligated to make such additional contributions (each an "Additional Capital Contribution")to the Company ratably in accordance with such Members'then existing Membership Interest within the time period approved by the Majority in Interest of the Members. In the event any Members fails to fulfill any commitment to contribute additional capital (the "Defaulting Member"), the Managers may elect to allow the remaining Members (the "Lending Members") to contribute to the Company,pro rata by Membership Interest,such Additional Capital Contribution. Any Member who makes a contribution to the Company pursuant to this Article for another Member shall have the option to(i)treat the contribution as additional capital of the Company,or(ii)treat the contribution as a loan to the defaulting Member,which election shall be made,in writing,at the time the contribution is made. If the contributing Member elects to treat his contribution as additional capital, such funds shall be allocated toward the purchase of additional capital ownership. After such contributions are made, each Member percentage interest in the profits,losses and cash flow of the Company shall be adjusted and determined by dividing the aggregate shares of all the Members in the Company into the aggregate shares of each Member. The resulting quotient with respect to each Member shall be the adjusted percentage interest of such Member. Such adjusted percentage interest of each Member shall supersede the percentage interest of such Member as set forth in Schedule I. If the contributing Member elects to treat his contribution as a loan to the defaulting Member,the amount advanced by the Member on behalf of the defaulting Member shall be a debt of the defaulting Member to the contributing Member and shall bear interest at the rate of Central Carolina Bank prime rate plus two percent(2%)per annum. Thereafter,all distributions of cash from the Company due to the defaulting Member shall be paid to the Member(or pro rata to each Member)who elected to treat a contribution as a loan,until such time as the principal and interest of the loan,are paid in full. (c) No Member shall be paid interest on any Capital Contribution to the Company. (d) In addition to the loans to the Defaulting Member provided for in Section 8.1(b) above,upon approval of the terms thereof by the Managers,any Member or Members may make a loan to the Company upon commercially reasonable terms. If more than one Member desires to participate in making such loans, the amount which the Company wishes to borrow shall be loaned by the Lending Members in amounts proportionate to their relative percentage of Membership Interest. Loans by a Member or Members to the Company shall not be considered Capital Contributions. 8.2 Capital Accounts _9_ (a) The Company shall maintain a separate capital account(each a"Capital Account") for each Member pursuant to the principles of this Section 8.2 and Treasury Regulation Section 1.704- 1(b)(2)(iv). The Initial Capital Account of each member shall be the Initial Capital Contribution of such Member. Such Capital Account shall be increased by(i)the amount of the subsequent Capital Contributions of such member to the Company under Section 8.1 and (ii such Member's allocable share of Company Income and Net Income pursuant to Section 9.1. Such Capital Account shall be decreased by(i)the amount of cash distributed to the Member by the Company pursuant to Section 9.2 and(ii)such Member's allocable share of Loss and Net Loss pursuant to Section 9.1. (b) The provisions of this Section 8.2 and other portions of this Agreement relating to the proper maintenance of Capital Accounts are designed to.comply with the requirements of Treasury Regulation Section 1.704-1(b). The Members intend that such provisions be interpreted and applied in a manner consistent with such Treasury Regulations. The Managers are authorized to modify the manner in which the Capital Accounts are maintained if the Managers determine that such modification(i)is required or prudent to comply with the Treasury Regulations and(ii) is not likely to have a material effect on the amounts distributable to any Member upon the dissolution of the Company. 8.3 Withdrawal or Reduction of Members' Contribution to Capital. (a) No Member shall have the right to withdraw all or any part of its Capital Contribution or to receive any return on any portion of its Capital Contribution,except as may be otherwise specifically provided in this Agreement. Under circumstances involving a return of any Capital Contribution, no Member shall have the right to receive property other than cash. (b) No member shall have priority over any other member, either as to the return of Capital Contributions or as to Net Income,Net Losses,or distributions;provided that this subsection shall not apply to loans(as distinguished from Capital Contributions)which a Member has made to the Company. 8.4 Liability of Members. No Member shall be liable for the debts, liabilities or obligations of the Company beyond his or its respective Initial Capital Contribution and any Additional Capital Contribution required of such member pursuant to Section 8.1(b) above. Except as otherwise expressly provided herein,no Member shall be required to contribute to the capital of,or to loan any funds to,the Company. ARTICLE IX-ALLOCATIONS,DISTRIBUTIONS,ELECTIONS AND REPORTS 9.1 Allocations. Subject to the provisos below,for purposes of maintaining Capital Accounts and in determining the rights of the Members among themselves,Net Income,or Net Loss,if any, for a Fiscal Year or other period, shall be allocated to the Members in proportion to their respective Membership Interests after giving effect to all Capital Account adjustments attributable to contributions and distributions of cash and property made during such Fiscal Year; provided,however,notwithstanding the provisions of the preceding clause of this Section 9.1, in the event any Member unexpectedly receives any adjustments,allocations,or distributions described in Treasury Regulation Sections 1.704.1(b)(2)(ii)(d)(4), 1.740-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6) items of Income shall be specially allocated to such Member(consisting of a prorata portion of each item of Company Income,including gross income,for such year)in an amount and manner sufficient to eliminate such deficit,if any in such Member's Adjusted Capital —10— Account,as quickly as possible. The foregoing proviso is intended to constitute a"qualified income offset" within the meaning of Section 1.704.1(b)(2)(ii)(d) of the Treasury Regulations and this proviso shall be interpreted consistently with such Treasury Regulations. 9.2 Distributions.The Managers shall distribute Distributable Cash and other property at such times and in such amounts as they may determine, in their sole discretion. All distributions of Distributable Cash or other property shall be made to the members in proportion to their respective Membership Interests. Except as provided in Section 9.3,all distributions of Distributable Cash and property shall be made at such time as determined by the Managers. 9.3 Limitation Upon Distributions. No distribution shall be declared and paid if payment of such distribution would cause the Company to violate any limitation on distributions provided in the Act. 9.4 Allocations for Tax Purposes. Except as otherwise provided herein,each item of Income,Net Income or Net Loss of the Company shall be allocated to the Members in the same manner as such allocations are made for book purposes pursuant to Section 9.1. In the event of a transfer of,or other change in,and interest in the Company during a Fiscal Year,each item of taxable income and loss shall be prorated in accordance with Section 706 of the Code, using any convention permitted by law and selected by the Managers. 9.5 Tax Status,Elections and Modifications to Allocations. (a) Notwithstanding any provision contained in this Agreement to the contrary,solely for federal income tax purposes,each of the Members hereby recognizes that the Company will be subject to all provisions of Subchapter K of the Code; provided, however, that the filing of all required returns thereunder shall not be construed to extend the purposes of the Company or expand the obligations or liabilities of the Members. (b) The Managers, in their sole discretion,may cause the Company to elect pursuant to Section 754 of the Code and the Treasury Regulations to adjust the basis of the Company assets as provided by Section 743 or 734 of the Code and the Treasury Regulations thereunder. The Company shall make such elections for Federal income tax purposes as may be determined by Managers,acting in their sole and absolute discretion. (c) The Managers shall prepare and execute any amendments to this Agreement necessary for the Company to comply with the provisions of Treasury Regulations Sections 1.704-1(b), 1.704-1(c)and 1.704-2 upon the happening of any of the following events: (i)incurring any liability which constitutes a"nonrecourse liability"as defined in Treasury Regulation Section 1.704-2(b)(3)or a "partner nonrecourse debt"as defined in Treasury Regulations Section 1.704-2(b)(4);(ii)a constructive termination of the Company pursuant to Code Section 708(b)(1)(B); or (iii) the contribution or distribution of any property,other than cash,to or by the Company. 9.6 Tax Matters Partner. The Managers shall designate a Member serving as a Manager,or if there is none or if none are eligible to act,any Member,as the"tax matters partner"for federal income tax purposes. The tax matters partner is authorized and required to represent the Company in connection with all examinations of the Company's affairs by tax authorities, including resulting -11- administrative and judicial proceedings,and to expend Company funds for professional services and costs associated therewith. The tax matters partner shall have the final decision making authority with respect to all Federal income tax matters involving the Company. The Members agree to cooperate with the tax matters partner to conduct such proceedings. Any direct out-of-pocket expense incurred by the tax matters partner in carrying out his obligations hereunder shall be allocated to and charged to the Company as an expense of the Company for which the tax matters partner shall be reimbursed. 9.7 Records and Reports. At the expense of the Company,the Managers shall maintain records and accounts of all operations and expenditures of the Company. The Company shall keep at its principal place of business the records required by the Act to be maintained there. 9.8 Books of Accounts. (a) The Company shall maintain the Company's books and records and shall determine all items of Income,Loss,Net Income and Net Loss in accordance with the method of accounting selected by the Managers,consistently applied. All of the records and books of account of the Company,in whatever form maintained,shall at all times be maintained at the principal office of the Company and shall be open to the inspection and examination of the Members or their representatives during reasonable business hours. Such right maybe exercised through any agent or employee of a Member designated by it or by an attorney or independent certified public accountant designated by such Member. Such Member shall bear all expenses incurred in any examination made on behalf of such Member. (b) All expenses in connection with the keeping of the books and records of the Company and the preparation of audited or unaudited financial statements required to implement the provisions of this Agreement or otherwise needed for the conduct of the Company's business shall be borne by the Company as an ordinary expense of its business. 9.9 Company Tax Return and Annual Statement. The Managers shall cause the Company to file a Federal income tax return and all other tax returns required to be filed by the Company for each Fiscal Year or part thereof,and shall provided to each person who at any time during the Fiscal Year or part thereof,and shall provide to each person who at any time during the Fiscal Year was a Member with an annual statement(including a copy of Schedule K-I to Internal Revenue Service Form 1065)indicating such Member's share of the Company's income, loss, gain, expense and other items relevant for federal income tax purposes. Such annual statement may be audited or unaudited as required by the Managers. 9.10 Bank Accounts. The bank account or accounts of the Company shall be maintained in the bank approved by the Managers. The terms governing such accounts shall be determined by the Managers and withdrawals from such bank accounts shall only be made by such parties as may be approved by the Managers. ARTICLE X-TRANSFERABILITY OF MEMBERSHIP INTEREST, ADMISSION OF MEMBERS. 10.1 Transferability of Membership Interest. The term"transfer" when used in this Agreement with respect to a Membership interest includes a sale,assignment,gift,pledge,exchange or other disposition. A Member shall not at any time transfer its Membership Interest except in accordance with the --12— considerations and limitations set out in Section 10.2. Any transferee of a Membership Interest by any means shall have only the rights, powers and privileges set out in Section 10.3 or otherwise provided by law and shall not become a Member of the Company except as provided in Section 10.4. 10.2 Restrictions on Transfers of Membership Interests. All or part of a Membership Interest may be transferred only after the Membership Interest has been offered to the Company and to the Members as provided in Section 10.6, and then only with the prior written approval of a Majority of the Managers,which approval may be granted or denied in the sole discretion of the Managers. The Managers shall not so consent unless the proposed transferee shall have furnished the Company with an opinion of counsel, satisfactory in form and substance to such Managers, that neither the offering nor the proposed transfer will violate any Federal or applicable state securities law and that neither such offering or proposed transfer will adversely affect the Company from being taxed as a partnership for Federal income tax purposes. 10.3 Rights of Transferee. Unless and until admitted as a Member of the Company in accordance with Section 10.4, the transferee of a Membership Interest shall not be entitled to any of the rights, powers, or privileges of a member, except that the transferee shall be entitled to receive the distributions and allocations to which the Member would be entitled but for the transfer of his Membership Interest. 10.4 Admission of Transferee as Members. A transferee of a Membership Interest may be admitted as a Member of the Company upon furnishing to the Company all of the following: (a) The written consent of all the Members. (b) The acceptance,in a form satisfactory to a Majority of the Managers,of all the terms and conditions of this Agreement; and (c) Payment of such reasonable expenses as the Company may incur in connection with his admission as a Member. 10.5 Admission of New Members. New Members of the Company may only be admitted with the unanimous consent of the Members, upon compliance with all terms specified by the Managers and upon receipt by the Company of an opinion of counsel,satisfactory in form and substance to a Majority of the Managers,that neither the offering nor the proposed sale of the Membership Interest will violate any Federal or applicable state securities law and that neither such offering or sale will adversely affect the Company from being taxed as a partnership for Federal income tax purposes. 10.6 Voluntary Transfer of Membership Interest. (a) Offer of Membership Interest. If any Member(referred to as the"Seller")desires to sell or otherwise transfer all or any portion of his interest(capital units)in the Company to any person or entity,said Seller shall give the other Members at least thirty(30)days written notice of his intention to sell or otherwise transfer all or any portion of his interest in the Company. Such written notice shall include an offer to sell to Company and the other Members,in that order,the portion of the Seller's capital interest in the Company which is subject to the notice. -13- (b) Purchase by Company or Members. For thirty(30)days after receipt of such notice, the Company or the other Members,in that order,shall have the right to elect to liquidate the portion of the Seller's capital interest in the Company which is subject to the required notice and shall exercise such right by written notice to the Seller within a thirty(30)day period. If the Company does not exercise its right to elect to purchase Seller's interest in the Company,then during the remaining portion of the notice period the other Members may elect to purchase Seller's interest in the Company. The purchase price for Seller's interest in the Company shall be equal to the purchase price specified in Article 10.6(t). (c) Lapse or Refusal. If,at the expiration of the required notice period,all of the Seller's interest in the Company which is subject to the required notice has not been purchased by the Company or any other Member, then the Seller may make a bona fide sale or transfer of his interest in the Company to a unrelated party. Such sale or transfer shall be made only to the person or entity specified in a required notice to all Members, and shall be made only upon the terms and conditions and for the consideration specified in said notice. The Seller may not sell or transfer his interest in the Company to any other person or entity or on terms and conditions which are more favorable than those stated in said required notice. However, if the Seller shall fail to make such a sale or transfer, within thirty (30) days following the expiration of the notice period,then said Seller's interest in the Company shall again be subject to all the restrictions contained this Article. (d) Transfer of Capital Interest in Company at Death. Upon the death of any Member, the estate of the deceased Member shall be required to offer to sell said deceased Member's capital interest in the Company to the Company,or other members,in that order. Such offer shall be made to the Company, or surviving Members,in that order,within sixty(60)days after the qualification of the deceased Member's personal representative. The Company or surviving Members shall notify the personal representative of the deceased Member in writing within the thirty (30) day period whether they shall purchase the deceased Member's interest in the Company. The purchase price and the terms and conditions of any sale under this Article are specified in Article 10.6(f). For purposes of this Article,if any Member shall be adjudicated to be incompetent or insane, then such incompetency or insanity shall be considered to be the death of said Member and the provisions of this Article shall be applicable. (e) Sale Upon Involuntary Disposition of Interest in Company. In the case of the passage or disposition of any interest in the Company owned by any Member(referred to as the"disposing Member")by any voluntary or involuntary manner whatsoever,except by death but including any sale,under judicial order, legal process, execution, attachment, enforcement of a pledge, trust, or encumbrance, the person or entity to whom said interest in the Company passes(referred to as the"Seller")must offer to sell said interest to the Company or other Members in that order. For thirty(30 days after the date,the Company or the other Members received actual notice of the passage or disposition of all or any portion of the disposing Members interest in the Company,the Company,or the other Members, in that order,shall have the right to purchase all of the Seller's interest in the Company by written notice to Seller within said thirty (30)days notice. The purchase price and terms and conditions of any sale under this Article are as set forth in Article 10.6(f). (f) Purchase Price Under Transfers under Article 10.6.et seq. The purchase price to be paid for any interest in the Company purchased pursuant to the provisions of Article 10.6 shall be the adjusted value of the Seller's capital interest in the Company and shall be determined as follows: (i)Fair market value of all real estate properties as of date of valuation. The fair market value will be determined by one or more competent MAI appraisers selected by the Company. Such -14-- appraiser must be on approved list of appraisers recommended by Central Carolina Bank in Wilmington, North Carolina. (ii)Plus all current assets as of date of valuation. (iii)Less all liabilities as of date of valuation. (iv)If a Member shall have a debt balance in either his member capital account or capital adjustment account,the amount of such debit balance shall be considered to be a debt owed by said Member to the Company and shall be considered to be an asset of the Company. (v)The resulting amount shall be the adjusted value of the Company. (vi)The purchase price of the Seller's capital interest shall be the adjusted value of the Company divided by the number of capital units outstanding and multiplied by the number of capital units owned by the Seller. g. Payment of Purchase Price. The purchase price shall be paid in full by the purchaser or in three (3) equal annual equal installments which will bear interest at two (2) points above Central Carolina Bank's prime interest rate. The first payment is due the first day after the expiration of the thirty (30) day notice period specified in this Article, or within thirty (30)days after receipt of the offer to sell under this Article. h. Other Credits or Debits of Withdrawing Member. If a deceased member, or a disposing Member shall have advanced money to the Company which the Company has not treated as a contribution to the capital of the Company,then the amount of such advance shall be paid by the Company to the estate of the deceased member or disposing Member at the time specified for the payment of the purchase price for the Seller's or deceased Member's stock in the Company. The amount of such advance shall be reduced by any amount owed to the Company by the deceased Member or disposing Member as provided in this Article. ARTICLE XI-DISSOLUTION AND TERMINATION 11.1 Withdrawal. Except as otherwise provided in this Agreement,no Member shall at any time retire or withdraw from the Company or withdraw any amount out of his Capital Account. Any Member retiring or withdrawing in contravention of this Section 11.1 shall indemnify, defend and hold harmless the Company and all other Members(other than a Member who is,at the time of such withdraw, in default under this Agreement)from and against any losses,expenses,judgments, fines, settlements or damages suffered or incurred by the Company or any such other Members arising out of or resulting from such retirement or withdrawal. 11.2 Dissolution. (a) The Company shall be dissolved upon the first of the following to occur: (i) When the period fixed for the duration of the Company in the Articles of Organization shall expire; -15- (ii)Upon the election to dissolve the Company by all of the Members. (iii)Upon the happening of any event of withdrawal (as defined in the Act)with respect to any Member,unless there is at least one remaining Member and the business of the Company is continued by the written consent of all of the remaining Managers or the written consent of the remaining Members holding a Majority in Interest within ninety(90)days of the action by or affecting the withdrawing Member;or (iv)The entry of a decree of judicial dissolution or the issuance of a certificate for administrative dissolution under the Act. (b) Upon dissolution of the Company,the business and affairs of the Company shall terminate and be wound up,and the assets of the Company shall be liquidated under this ARTICLE. (c) Dissolution of the Company shall be effective as of the day on which the event occurs giving rise to the dissolution,but the Company shall not terminate until there has been a winding up of the Company's business and affairs,and the assets of the Company have been distributed as provided in Section 11.3. (d) Upon dissolution of the Company,the Managers may cause any part or all of the assets of the Company to be sold in such manner as the Managers shall determine in an effort to obtain the best prices for such assets;provided, however,that the Managers may distribute assets of the Company in kind to the Members to the extent practicable. 11.3 Articles of Dissolution. Upon the dissolution and commencement of the winding up of the Company, the Managers shall cause Articles of Dissolution to be executed on behalf of the Company and filed with the Secretary of State, and a Manager or authorized Member shall execute, acknowledge and file any and all other instruments necessary or appropriate to reflect the dissolution of the Company. 11.4 Distribution of Assets Upon Dissolution. In settling accounts after dissolution, the assets of the Company shall be paid in the following order: (a) First, to creditors, in the order of priority as provided by law, except those to Members on account of their Capital Contributions; (b) Second, an amount equal to the then remaining credit balances in the Capital Accounts of the Members shall be distributed to the Members in proportion to the amount of such balances; and (c) Third,any remainder shall be distributed to the Members of the Company,pro rata, to their respective Membership Interests. 11.5 Distributions in Kind. If any assets of the Company are distributed in kind,such assets shall be distributed to the Members entitled thereto as tenants-in-common in the same proportions as the Members would have been entitled to cash distributions if such property has been sold for cash and the net proceeds thereof distributed to the Members. In the event that distributions in kind are made to the -16- Members upon dissolution and liquidation of the Company,the Capital Account balances of such Members shall be adjusted to reflect the Members'allocable share of gain or loss which would have resulted if the distributed property had been sold at its fair market value. ARTICLE XII-MISCELLANEOUS PROVISIONS 12.1 Competing Business. Except as otherwise expressly provided in this Agreement or the Act, neither the Managers nor the Members, nor any of their shareholders, directors, officers, employees,partners,agents,family members or affiliates,shall be prohibited or restricted in any way from investing in or conducting,either directly or indirectly,and may invest in and/or conduct,either directly or indirectly, businesses of any nature whatsoever, including the ownership and operation of a business or properties similar to or in the same geographical area as those held by the Company. Except as otherwise provided in this or the Act,any investment in or conduct or any such businesses by any such person or entity shall not give rise to any claim for an accounting by any member or the Company or any right to claim any interest therein or the profits therefrom. 12.2 Members'Representations and Agreements. Notwithstanding anything contained in this Agreement in the contrary, each Member hereby represents and warrants to the Company, the Managers and to each other that(i) the Membership Interest of such Member is acquired for investment purposes only,for the Member's own account,and not with a view to or in connection with any distribution, reoffer,resale or other disposition not in compliance with the Securities Act of 1933,as amended,and the rules and regulations thereunder(the "1933 Act") and applicable state securities laws, (ii) such Member, alone or together with the Member's representatives,possess such expertise,knowledge and sophistication in financial and business matters generally,and in the type of transactions in which the Company proposes to engage in particular,that the Member is capable of evaluating the merits and economic risks of acquiring and holding the Membership Interest and the Member is able to bear all such economic risks now and in the future,(iii)such Member has had access to all of the information with respect to the Membership Interest acquired by the Member under this Agreement that the Member deems necessary to make a complete evaluation thereof and has had the opportunity to question the other Members and the Managers(if any) concerning such Membership Interest,(iv)such Member's decision to acquire the Membership Interest for investment has been based solely upon the evaluation made by the Member,(v)such Member is aware that the Member must bear the economic risk of an investment in the Company for the 1933 Act or under the securities Laws of various states and, therefore, cannot be resold unless such Membership Interests are subsequently registered under the 1933 Act and applicable state securities laws or an exemption from registration is available, (vi) such Member is aware that only the Company can take action to register Membership Interests and the Company is under no such obligation and does not propose to attempt to do so,(vii)such Member is aware that this Agreement provides for restrictions on the ability of a Member to sell,transfer,assign,mortgage,hypothecate or otherwise encumber the Member's Membership Interest,(viii) such Member agrees that the Member will truthfully and completely answer all questions,and make and perform all covenants, that the Company or the Managers may, contemporaneously or hereafter, ask or demand for the purpose of establishing compliance with the 1993 Act and applicable state securities laws, and(ix) if the Member is an organization,that it is duly organized, validly existing, and in good standing under the laws of its state of organization and that it has full organizational power and authority to execute and agree to this Agreement and to perform its obligations hereunder. 12.3 Notice. -17- (a) All notices,demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. (b) All notices,demands and requests to be sent to any Manager or Member pursuant to this Agreement shall be deemed to have been properly given or served if addressed to such person at the address as it appears on the Company records and(i)personally delivered,(ii)deposited for next day delivery by Federal Express, or other similar overnight courier services, (iii) deposited in the United States mail, prepaid and registered or certified with return receipt requested or(iv)transmitted via telecopier or other similar devise to the attention of such person with receipt acknowledged. (c) All notices, demands and requests so given shall be deemed received, (i) when actually received, if personally delivered, deposited for next day delivery with an overnight courier or telecopied,or(ii)as indicated upon the return receipt if deposited in the United States mail. (d) The Managers and Members shall have the right from time to time,and at any time during the term of this Agreement, to change their respective addresses by delivering to the other parties written notice of such change in the manner prescribed in 12.3(b). (e) All distributions to any Member shall be made at the address at which notices are sent unless otherwise specified in writing by any such Member. 12.4 No Action. No Member shall have any right to maintain any action for partition with respect to the property of the Company. 12.5 Amendments. This Agreement as well as the Articles of Organization may only be amended or modified by a writing executed and delivered by each of the Members. 12.6 Power of Attorney. (a) Each Member hereby makes,constitutes and appoints each elected Manager as may be serving from time to time, severally, with full power of substitution, as the Member's true and lawful attorney-in-fact,for such Member and in such Member's name,place and stead and for the Member's use and benefit to sign and acknowledge,file and record,any amendments hereto among the Members and for the further purpose of executing and filing on behalf of each Member,any documents necessary to constitute the continuation of the Company, the admission or withdrawal of a Member, the qualification of the Company in a foreign jurisdiction(or amendment to such qualification),the admission of substitute Members or the dissolution or termination of the Company, provided such continuation, admission, withdrawal, qualification,or dissolution and termination are in accordance with the terms of this Agreement. (b) The foregoing power of attorney is a special power of attorney coupled with an interest,is irrevocable and shall survive the death or legal incapacity of each Member. It may be exercised by any one of said attorneys by listing all of the Members executing any instrument over the signature of the attorney-in-fact acting for all of them. The power of attorney shall survive the delivery of an assignment by a Member of the whole or any portion of his Membership Interest. In those cases in which the assignee of, or the successor to,a Member owning Membership Interest has been approved by the Members for admission to the Company as a substitute Member,the power of attorney shall survive for the sole purpose of enabling the Managers to execute,acknowledge and file any instrument necessary to effect such substitution. -18- (c) This power of attorney shall not be affected by the subsequent incapacity or mental incompetence of any Member. 12.7 Governing Law;Arbitration. This Agreement is made in New Hanover County, North Carolina,and the rights and obligations of the Members hereunder shall be interpreted,construed and enforced in accordance with the laws of the State of North Carolina. Any dispute arising out of or in connection with this Agreement or the breach thereof shall be decided by arbitration to be conducted in Wilmington, North Carolina, in accordance with the then prevailing commercial arbitration rules of the American Arbitration Association, and judgment thereof may be entered in any court having jurisdiction thereof. 12.8 Entire Agreement. This Agreement,including all schedules to this Agreement,as amended from time to time in accordance with the terms of this Agreement,contains the entire agreement among the parties relative to the subject matters hereof, and all prior negotiations, agreements or understandings,whether oral or written,are merged herein and superseded hereby. 12.9 Waiver. No consent or waiver,express or implied,by any Member to or for any breach or default by any other Member in the performance by such other Member of his or its obligations under this Agreement shall be deemed or construed to be a consent or waiver to any other breach or default in the performance by such other Member of the same or of any other obligations of such other Member under this Agreement. Failure on the part off any Member to complain of any act or failure to act of any of the other Members or to declare any of the other Members in default,regardless of how long such failure continues,shall not constitute a waiver by such Member of his or its rights. 12.10 Severability. If any provision of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement and the application of such provisions to other persons or circumstances shall not be affected thereby,and the intent of this Agreement shall be enforced to the greatest extent permitted by law. 12.11 Binding Agreement. Subject to the restriction on transferability set forth in this Agreement, the Agreement shall inure to the benefit of and be binding upon the undersigned Members and their respective legal representatives, successors and assigns. 12.12 Tense and Gender. Unless the context clearly indicates otherwise,the singular shall include the plural and vice versa. Whenever the masculine,feminine or neuter gender is used inappropriately in this Agreement,this Agreement shall be read as if the appropriate gender were used. 12.13 Captions. Captions are included solely for convenience of reference and if there is any conflict between captions and the text of this Agreement;the text shall control. 12.14 Benefits of Agreement. Nothing in this Agreement expressed or implied, is intended or shall be construed to give to any creditor of the Company or any creditor of any Member or any other person or entity whatsoever,other than the Members and the Company,any legal or equitable right,remedy or claim under or in respect of this Agreement or any covenant,condition or provisions herein contained,and such provisions are and shall be held to be for the sole and executive benefit of the Members and the Company. -19 12.15 Counterparts. This Agreement may be executed in multiple counterparts,each of which shall be deemed an original for all purposes and all of which when taken together shall constitute a single counterpart instrument. Executed signature pages to any counterpart instrument may be detached and affixed to a single counterpart, which single counterpart with multiple executed signature pages affixed thereto constitutes the original counterpart instrument. All of these counterpart pages shall be read as though one and they shall have the same force and effect as if all of the parties had executed a single signature page. -20- 9102566538 ALLEN MACDONALD D 10:56:49 a.m. 04-18-2007 22/24 IN WITNESS WHEREOF, the undersigned, being the initial Member if the Company, have caused this Agreement to be duly adopted by the Company : of the igliday o • pril,2007,and do hereby assume and agree to be bound by and to perform all of the to s and provisi• s set forth in this Agreement. Brun ick ' . •-flies, • (ME .t BY: Ails ii e t,Manager BY ZE1.�� •i eit' Stark,Manager BHBS •O' °•RATION BY: '4// William H. Mast,President -21- 9102566538 ALLEN MACDONALD D 10:67:15 a.m. 04-18-2007 24/24 SCHEDULE II MANAGERS OF THE COMPANY WE ACCEPT THE POSITION AS MANAGERS • ND AGRE- 0 ABIDE BY THE TERMS AND CONDITIONS OF THIS OPERATING AG' ' I . DATED: April ,2007. tiliil‘117«;I' T STARK WIL'7 M H. AST -23-- 9102566538 ALLEN MACDONALD D 10:57:03 a.m. 04-18-2007 23/24 SCHEDULEI i NAME&ADDRESS INITIAL CAPITAL INITIAL CAPITAL MEMBERSHIP OR MEMBERS CONTRIBUTION UNITS INTEREST Brunswick Properties,LLC $39,500.00 39.5 79%a 1508 Military Cutoff,Suite 302 Wilmington,NC 28403 B HB S CORPORATION $10,500.00 10.5 21% 1809 Verrazzano Drive Wilmington NC 28405 -22- AMP SM Michael C. Gallant PE, PA Engineering/Consulting/Design N _... June 27, 2007 NCDENR-DWQ S 101 D 127 Cardinal Dr. Ext I,.� Wilmington,NC W 28405 Attn: Linda Lewis Re: Oyster Landing To whom it may concern, Please find attached plans, specifications, and a permit application for Oyster Landing. This packet contains the following: • 2 Copies of an application and low density supplement. • Brief narrative. • 2 copies of plans and specs. • A fee of$420.00 If you have any questions regarding this project please call me at 910.328.2188. Sincerely, &Le/ Michael C. Gallant, PE RECEIVED JUN.? A 2007 DWQ tw# gallantmc@yahoo.com tel 910.328.2188 fax 910.328.2230 P.O. Box 4039 Surf City, NC 28445 • sM Michael C. Gallant PE,PA Engineering/Consulting/Design NARRATIVE Project Description Oyster Landing is a residential development located in Sneads Ferry, NC. 474 lots are planned for the subdivision. The site covers 320+/- acres off NC 172 (NCSR 1518) in Onslow County. This site plan for this project has been approved by Onslow County. Site Description Currently the site incorporates an existing sand mine and is predominately wooded. The site is surrounded residential uses. There are wetlands on site. The wetland line has been approved by USCOE and is shown on the plans. Adjacent Property The site is located in a residential/commercial district. All adjacent property is zoned for residential or commercial use. The runoff from this project drains to Turkey Creek and Stones Creek. The site lies in the Cape Fear River Basin. The site will utilize a low density storm water plan. Soils According to the Soil Survey of Pender County the tract soils consist predominately of Leon series soils. Owner Oyster Landing Sand Mine, LLC 1508 Military Cuttoff, Suite 302 Wilmington,NC 28403 910.256.0101 Soil Erosion Measures Soil erosion and sedimentation control will be achieved using sediment fence and sediment basins w/rock dams. gallantmc@yahoo.com tel 910.328.2188 fax 910.328.2230 P.O. Box 4039 Surf City, NC 28445 North Carolina Secretary of State Page 1 of 1 North Carolina 1 Elaine F Marshall EP.ARTME NT OF II IE Secretary SECRETARY OF STATE PO Box 29822 Raleigh,NC 2 T S2 6-0822 (919)807-2000 CORPORATIONS Date: 6/20/2007 Corporations Home Click here to: Search By Corporate Name View Document Filings I Search For New Corporation Print apre-populated Annual Report Form I Annual Report Count I File an Search By Registered Agent Important Notice Annual Report Corporations FAQ Corporation Names Tobacco Manufacturers -_ Dissolution Reports Name Name Type Non-Profit Reports NC Oyster Landing, LLC Legal Verify Certification Online Annual Reports Limited Liability Company Information LINKS&LEGISLATION SOSID: 0907851 KBBE B2B Annual Reports Status: Current-Active SOSID Number Correction Date Formed: 3/8/2007 2001 Bill Summaries 1999 Senate Bills Citizenship: Domestic Annual Reports 1997 State of Inc.: NC Corporations 1997 Duration: Perpetual Register for E-Procurement Registered Agent Dept. of Revenue ONLINE ORDERS Agent Name: Vincent, Jon T. Start An Order Registered Office Address: 1508 Military Cutoff Road, Ste.302 New Payment Procedures Wilmington NC 28403 Registered Mailing Address: 1508 Military Cutoff Road, Ste.302 CONTACT US Wilmington NC 28403 Corporations Division Principal Office Address: 1508 Military Cutoff Road, Ste. 302 Secretary of State's web site Wilmington NC 28403 TOOLS Principal Mailing Address: 1508 Military Cutoff Road, Ste.302 Wilmington NC 28403 Secretary of State Home Secretary of State Site Map Printable Page For questions or comments about the Secretary of State's web site, please send e-mail to Webmaster. http://www.secretary.state.nc.us/corporations/Corp.aspx?Pitemld=8158056 6/20/2007 1-606-8158056 LIMITED LIABILITY COMPANY . o , ANNUAL REPORT NAME OF LIMITED LIABILITY COMPANY: Oyster Landing,LLC STATE OF INCORPORATION: NC SECRETARY OF STATE R.L.L.P.ID NUMBER: 0907851 NATURE OF BUSINESS: REGISTERED AGENT: Vincent,Jon T. REGISTERED OFFICE MAILING ADDRESS: 1508 Military Cutoff Road,Ste.302 Wilmington,NC 28403 REGISTERED OFFICE STREET ADDRESS: 1508Military Cutoff Road,Ste. 302 Wilmington,NC 28403 New Hanover County SIGNATURE OF THE NEW REGISTERED AGENT: SIGNATURE CONSTITUTES CONSENT TO THE APPOINTMENT PRINCIPAL OFFICE TELEPHONE NUMBER: PRINCIPAL OFFICE MAILING ADDRESS: 1508Military Cutoff Road,Ste. 302 Wilmington,NC 28403 PRINCIPAL OFFICE STREET ADDRESS: 1508 Military Cutoff Road,Ste.302 Wilmington,NC 28403 MANAGERS/MEMBERS/ORGANIZERS: Name: Name: Name: Title: Title: Title: Address: Address: Address: City: City: City: State: Zip: State: Zip: State: Zip: CERTIFICATION OF ANNUAL REPORT MUST BE COMPLETED BY ALL LIMITED LIABILITY COMPANIES FORM MUST BE SIGNED BY A MANAGER/MEMBER DATE TYPE OR PRINT NAME TYPE OR PRINT TITLE ANNUAL REPORT FEE: $200 MAIL TO: Secretary of State•Corporations Division•Post Office Box 29525•Raleigh,NC 27626-0525 iiilUii � iIilil II I111111111 1I U.S. ARMY CORPS OF ENGINEERS WILMINGTON DISTRICT Action Id.200600189 County: Onslow U.S.G.S.Quad: Sneads Ferry NOTIFICATION OF JURISDICTIONAL DETERMINATION Property Owner: Brunswick Properties LLC&BHBS Agent: Clark Group Address: atin:Bill Mast attn:Byron Bateman 1508 Military Cutoff,Suite 302 P.O.Box 10136 Wilmington,NC 28403 Wilmington,NC 28404 .z Telephone No.: 910-256-0101 910-602-3900 Property description: Size(acres) 196 Nearest Town Sneads Ferry Nearest Waterway Turkey Creek River Basin White Oak USGS HUC 03020302 Coordinates N 34.5334 W 77.4842 Location description The property is located 1.5 miles east of Highway 17 on the north side of Old Folkstone Rd, adjacent to unnamed tributaries to Turkey Creek,Onslow County. Indicate Which of the Following Apply: Based on preliminary information,there may be wetlands on the above described property. We strongly suggest you have this property inspected to determine the extent of Department of the Army(DA)jurisdiction. To be considered final,a jurisdictional determination must be verified by the Corps. This preliminary determination is not an appealable action under the Regulatory Program Administrative Appeal Process(Reference 33 CFR Part 331). _ There are Navigable Waters of the United States within the above described property subject to the permit requirements of Section 10 of the Rivers and Harbors Act and Section 404 of the Clean Water Act. Unless there is a change in the law or our published regulations,this determination may be relied upon for a period not to exceed five years from the date of this notification. X There are wetlands on the above described property subject to the permit requirements of Section 404 of the Clean Water Act(CWA)(33 USC§ 1344). Unless there is a change in the law or our published regulations,this determination may be relied upon for a period not to exceed five years from the date of this notification. _ We strongly suggest you have the wetlands on your property delineated. Due to the size of your property and/or our present workload,the Corps may not be able to accomplish this wetland delineation in a timely manner. For a more timely delineation,you may wish to obtain a consultant. To be considered final,any delineation must be verified by the Corps. The wetland on your property have been delineated and the delineation has been verified by the Corps. We strongly suggest you have this delineation surveyed. Upon completion,this survey should be reviewed and verified by the Corps. Once verified,this survey will provide an accurate depiction of all areas subject to CWA jurisdiction on,your property which,provided there is no change in the law or our published regulations,may be relied upon for a period not to exceed five years. X The wetlands have been delineated and surveyed and are accurately depicted on the plat signed by the Corps Regulatory Official identified below on November 21,2005. Unless there is a change in the law or our published regulations,this determination may be relied upon for a period not to exceed five years from the date of this notification. There are no waters of the U.S.,to include wetlands,present on the above described property which are subject to the permit requirements of Section 404 of the Clean Water Act(33 USC 1344). Unless there is a change in the law or our published regulations,this determination may be relied upon for a period not to exceed five years from the date of this notification. X The property is located in one of the 20 Coastal Counties subject to regulation under the Coastal Area Management Act (CAMA). You should contact the Division of Coastal Management in Wilmington,NC at 910-796-7215 to determine their requirements. Page 1 of 2 Action ID: 200600189 Placement of dredged or fill material within waters of the US and/or wetlands without a Department of the Army permit may constitute a violation of Section 301 of the Clean Water Act(33 USC§ 1311). If you have any questions regarding this determination and/or the Corps regulatory program,please contact Brad Shaver at 910-251-4611. Basis For Determination: The subject area exhibits wetland criteria as described in the 1987 Corps Wetland Delineation Manual and is adjacent to an unnamed tributary of Turkey Creek,a navigable water of the US. Remarks: The site was field verified rro/n�October 12,2005 with Byron Bateman and Corey Novak. Corps Regulatory Official: CG-Fcn0, Date November 17,2005 Expiration Date November 21,2010 Corps Regulatory Official(Initial): FOR OFFICE USE ONLY: • A plat or sketch of the property and the wetland data form must be attached to the file copy of this form. • A copy of the"Notification Of Administrative Appeal Options And Process And Request For Appeal"form must be transmitted with the property owner/agent copy of this form. • If the property contains isolated wetlands/waters,please indicate in"Remarks"section and attach the "Isolated Determination Information Sheet"to the file copy of this form. Page 2 of 2 : , NOTIFICATION OF ADIVIINIS IVEKArPEAD OPTIO�S fl sS0 `� ►:1 .ST R APPEAL ? _ .1 ' Applicant: Brunswick Properties LLC/BBBS File Number: 200600189 Date:November 21,2005 Attached is: D See Section below INITIAL PROFFERED PERMIT(Standard Permit or Letter of A permission) PROFFERED PERMIT(Standard Permit or Letter of permission) B PERMIT DENIAL C X APPROVED JURISDICTIONAL DETERMINATION D PRELIMINARY JURISDICTIONAL DETERMINATION E SECTION I-The following identifies your rights and options regarding an administrative appeal of the above decision. Additional information may be found at http://www.usace.army.mil/inet/functions/cw/cecwo/reg or Corps regulations at 33 CFR Part 331. A: INITIAL PROFFERED PERMIT: You may accept or object to the permit. • ACCEPT: If you received a Standard Permit,you may sign.the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission(LOP),you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety,and waive all rights to appeal the permit,including its terms and conditions,and approved jurisdictional determinations associated with the permit. • OBJECT: If you object to the permit(Standard or LOP)because of certain terms and conditions therein,you may request that the permit be modified accordingly. You must complete Section II of this form and return the form to the district engineer. Your objections must be received by the district engineer within 60 days of the date of this notice, or you will forfeit your right to appeal the permit in the future. Upon receipt of your letter,the district engineer will evaluate your objections and may: (a)modify the permit to address all of your concerns, (b)modify the permit to address some of your objections,or(c)not modify the permit having determined that the permit should be issued as previously written. After evaluating your objections, the district engineer will send you a proffered permit for your reconsideration, as indicated in Section B below. B: PROFFERED PERMIT: You may accept or appeal the permit • ACCEPT: If you received a Standard Permit,you may sign the permit document and return it to the district engineer for final authorization. If you received a Letter of Permission(LOP),you may accept the LOP and your work is authorized. Your signature on the Standard Permit or acceptance of the LOP means that you accept the permit in its entirety,and waive all rights to appeal the permit,including its terms and conditions,and approved jurisdictional determinations associated with the permit • • APPEAL: If you choose to decline the proffered permit(Standard or LOP)because of certain teens and conditions therein,you may appeal the declined permit under the Corps of Engineers Adniinistrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. C: PERMIT DENIAL: You may appeal the denial of a permit under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. D: APPROVED JURISDICTIONAL DETERMINATION: You may accept or appeal the approved JD or provide new information. • ACCEPT: You do not need to notify the Corps to accept an approved JD. Failure to notify the Corps within 60 days of the date of this notice, means that you accept the approved JD in its entirety,and waive all rights to appeal the approved JD. • APPEAL: If you disagree with the approved JD,you may appeal the approved JD under the Corps of Engineers Administrative Appeal Process by completing Section II of this form and sending the form to the division engineer. This form must be received by the division engineer within 60 days of the date of this notice. E: PRELIMINARY JURISDICTIONAL DETERMINATION: You do not need to respond to the Corps regarding the preliminary JD. The Preliminary JD is not appealable. If you wish,you may request an approved JD (which may be appealed),by contacting the Corps district for further instruction. Also you may provide new information for further consideration by the Corps to reevaluate the JD. SECTION II-REQUEST FOR APPEAL or OBJECTIONS TO AN INITIAL PROFFERED PERMIT REASONS FOR APPEAL OR OBJECTIONS: (Describe your reasons for appealing the decision or your objections to an initial proffered permit in clear concise statements. You may attach additional information to this form to clarify where your reasons or objections are addressed in the administrative record.) ADDITIONAL INFORMATION: The appeal is limited to a review of the administrative record,the Corps memorandum for the record of the appeal conference or meeting, and any supplemental information that the review officer has determined is needed to clarify the administrative record. Neither the appellant nor the Corps may add new information or analyses to the record. However,you may provide additional information to clarify the location of information that is already in the administrative record. POINT OF CONTACT FOR QUESTIONS OR INFORMATION: If you have questions regarding this decision If you only have questions regarding the appeal process you and/or the appeal process you may contact: may also contact: Brad Shaver Mr.Michael Bell,Administrative Appeal Review Officer Regulatory Specialist CESAD-ET-CO-R P.O. Box 1890 U.S. Army Corps of Engineers, South Atlantic Division Wilmington,NC 28402-1890 60 Forsyth Street, Room 9M15 Atlanta,Georgia 30303-8801 RIGHT OF ENTRY: Your signature below grants the right of entry to Corps of Engineers personnel, and any government consultants,to conduct investigations of the project site during the course of the appeal process. You will be provided a 15 day notice of any site investigation, and will have the opportunity to participate in all site investigations. Date: Telephone number: Signature of appellant or agent. DIVISION ENGINEER: Commander U.S.Army Engineer Division, South Atlantic 60 Forsyth Street,Room 9M15 Atlanta, Georgia 30303-3490