WQ0005910_Final Permit_20190617

ROY COOPER
Governor
MICHAEL S. REGAN
Secretary
LINDA CULPEPPER
Director
NORTH CAROLINA
Environmental Quality
June 17, 2019
AUGUSTINUS GERRITSEN — VICE PRESIDENT
AvOCA,LLC
POST OFFICE BOX 129
MERRY HILL, NORTH CAROLINA 27957
Dear Mr. Gerritsen:
Subject: Permit No. WQ0005910
Avoca — Merry Hill WWTP
Wastewater Irrigation System
Bertie County
In accordance with your permit renewal request received March 4, 2019, and subsequent additional
information received May 15, 2019, we are forwarding herewith Permit No. WQ0005910 dated June 17,
2019, to Avoca, LLC for the continued operation of the subject wastewater treatment and irrigation
facilities. Please note that this renewed permit shall become effective on September 1, 2019 (i.e., the day
after the expiration date of the existing permit).
The following modifications to the subject permit are as follows:
• This permit no longer covers the operation of a residuals land application program.
• The facility description has changed to be more accurate. Additions to the description include
a flow rate totalizer, two 350 gallon per minute (GPM) irrigation pumps, and two 520 GPM
irrigation pumps.
This permit shall be effective from September 1, 2019 through October 31, 2024, shall void Permit
No. WQ0005910 issued April 4, 2014, and shall be subject to the conditions and limitations therein. The
Permittee shall submit a renewal application no later than May 4, 2024.
Please pay attention to the monitoring requirements listed Attachments A, B, and C for they may
differ from the previous permit issuance. Failure to establish an adequate system for collecting and
maintaining the required operational information shall result in future compliance problems.
The Division has removed the following permit conditions since the last permit issuance dated
April 4, 2014:
➢ Old Condition I.I. — GW-30 Well Abandonment Records were submitted.
➢ Old Condition VI.2. — This condition has been removed because the permit is not voidable.
4 North Carolina Department of Environmental Quality I Division of Water Resources
512 North Salisbury Street 11617 Mail Service Center I Raleigh, North Carolina 27699-1617
00 NM-LI C141WIn "�� r
Depww" nr Y 919.707.9000

Mr. Augustinus Gerritsen
June 17, 2019
Page 2 of 2
The following permit conditions are new since the last permit issuance dated April 4, 2014:
➢ Condition II.12. and II.13. — Setbacks have been clarified.
➢ Condition III.16. - Metering equipment shall be tested and calibrated annually.
➢ Condition IV.9.b. — Date of irrigation equipment calibration must be logged.
➢ Condition VI.10. — This condition states that the permit will not be renewed if the annual fee
is not paid.
➢ Attachment A — The parameters of Chloride, Total Nitrogen and Total Dissolved Solids have
been added to monitoring. Sampling frequency for BOD, Ammonia, Nitrate, Kjeldahl
Nitrogen, Phosphorus, and Total Suspended solids has been changed to monthly. Daily
monitoring for pH has changed to 5 x Week. The Total Kjeldahl Nitrogen unit of measurement
for reporting has been changed to mg/L instead of lbs/acre.
➢ Attachment C — The parameters of Chloride and Total Phosphorus have been added to
groundwater monitoring. The parameter from Volatile Compounds, (GC/MS) (PCS Code
78732) has changed to Volatile Compounds (GW) (PCS Code GWVOC). MW-6 has been
replaced by MW-9.
If any parts, requirements, or limitations contained in this permit are unacceptable, the Permittee
has the right to request an adjudicatory hearing upon written request within 30 days following receipt of
this permit. This request shall be in the form of a written petition, conforming to Chapter 150B of the North
Carolina General Statutes, and filed with the Office of Administrative Hearings at 6714 Mail Service
Center, Raleigh, NC 27699-6714. Otherwise, this permit shall be final and binding.
If you need additional information concerning this permit, please contact Erick Saunders at (919)
707-3659 or erickson.saunders ,ncdenr.gov.
Sincerely, Q
-'Linda Culpepper, Director
v Division of Water Resources
cc: Bertie County Health Department (Electronic Copy)
Washington Regional Office, Water Quality Regional Operations Section (Electronic Copy)
Laserfiche File (Electronic Copy)
Digital Permit Archive (Electronic Copy)
Central Files

I.
NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMNIISSION
DEPARTMENT OF ENVIRONMENTAL QUALITY
RALEIGH
WASTEWATER IRRIGATION SYSTEM PERMIT
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
Avoca, LLC
Bertie County
FOR THE
continued operation of a 50,000 gallon per day (GPD) wastewater treatment and irrigation facility
consisting of -
two 65,500 flow equalization tanks each with a 10 horsepower (hp) mixer and a 2 hp pump; three 63,500
gallon aeration tanks with three 25 hp mixers and three 60 hp blowers; a 9,000 gallon clarifier (not in use);
an 880 gallon dissolved air flotation (DAY) unit with a 7.5 hp pump; a 2,244 gallon sludge sump with two
3 hp mixers; a 68,000 gallon sludge holding tank with a 3 hp pump and a 7.5 hp mixer; two 30,000 gallon
effluent storage tanks (not in use); a Rosemont A732 Magnetic effluent flow meter with an a effluent flow
rate totalizer; a 75,000 gallon tertiary effluent lagoon with an aerator; a 7.5 hp effluent pump; a 3 hp effluent
pump; a 0.9 acre clay lined effluent storage pond with an air injector aerator; two 350 gallon per minute
(GPM) irrigation pumps; two 520 GPM irrigation pumps; approximately 5,600 linear feet (LF) of 8-inch
PVC force main; a 32.88 acre spray irrigation area; and all associated piping, valves, controls, and
appurtenances
to serve the Avoca — Merry Hill WWTP, with no discharge of wastes to surface waters, pursuant to the
application received March 4, 2019, subsequent additional information received May 15, 2019, and in
conformity with the Division -approved plans and. specifications considered a part of this permit.
This permit shall be effective from September 1, 2019 through October 31, 2024, shall void Permit No.
WQ0005910 issued April 4, 2014, and shall be subject to the following conditions and limitations:
1. The Permittee shall request renewal of this permit on Division -approved forms no later than May 4,
2024. [15A NCAC 02T .0105(b), 02T .0109]
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H. PERFORMANCE STANDARDS
The Permittee shall maintain and operate the subject non -discharge facilities so there is no discharge to
surface waters, nor any contravention of groundwater or surface water standards. In the event the
facilities fail to perform satisfactorily, including the creation of nuisance conditions due to improper
operation and maintenance, or failure of the irrigation areas to assimilate the effluent, the Permittee
shall take immediate corrective actions, including Division required actions, such as the construction
of additional or replacement wastewater treatment or disposal facilities. [15A NCAC 02T
.0108(b)(1)(A)]_
2. This permit shall not relieve the Permittee of their responsibility for damages to groundwater or surface
water resulting from the operation of this facility. [ 15A NCAC 02T .0108(b)(1)(A)]
Groundwater monitoring wells shall be constructed in accordance with 15A NCAC 02C .0108
(Standards of Construction for Wells Other than Water Supply), and any other jurisdictional laws and
regulations pertaining to well construction. [15A NCAC 02C .0108]
4. Effluent quality shall not exceed the limitations specified in Attachment A. [15A NCAC 02T
.0108(b)(1)(A)]
5. Application rates, whether hydraulic, nutrient, or other pollutant, shall not exceed those specified in
Attachment B. [15A NCAC 02T .0108(b)(1)(A)]
6. Wastewater irrigation fields permitted prior to December 30, 1983 (i.e., Field 4) have a compliance
boundary that is either 500 feet from the wastewater irrigation area, or at the property boundary,
whichever is closest to the wastewater irrigation area. Any exceedance of groundwater standards at or
beyond the compliance boundary shall require corrective action. Division -approved relocation of the
compliance boundary shall be noted in Attachment B. Multiple contiguous properties under common
ownership and permitted for use as a disposal system shall be treated as a single property with regard
to determination of a compliance boundary. [15A NCAC 02L .0106(e), 02L .0107(a), 02T .0105(h),
G.S. 143-215.1(i), G.S. 143-215.1(k)]
Wastewater irrigation fields permitted on or after December 30, 1983 (i.e., Fields 5-1, 5-2, 5-3, and 5-
4) have a compliance boundary that is either 250 feet from the wastewater irrigation area, or 50 feet
within the property boundary, whichever is closest to the wastewater irrigation area. Any exceedance
of groundwater standards at or beyond the compliance boundary shall require corrective action.
Division -approved relocation of the compliance boundary shall be noted in Attachment B. Multiple
contiguous properties under common ownership and permitted for use as a disposal system shall be
treated as a single property with regard to determination of a compliance boundary. [15A NCAC 02L
.0106(d)(2), 02L .0107(b), 02T .0105(h), G.S. 143-215.1(i), G.S. 143-215.1(k)]
8. The review boundary is midway between the compliance boundary and the wastewater irrigation area.
Any exceedance of groundwater standards at or beyond the review boundary shall require preventative
action. [15A NCAC 02L .0106(d)(1), 02L .0108]
9. The Permittee shall apply for a permit modification to establish a new compliance boundary prior to
any sale or transfer of property affecting a compliance boundary (i.e., parcel subdivision). [ 15A NCAC
02L .0107(c)]
10. No wells, excluding Division -approved monitoring wells, shall be constructed within the compliance
boundary except as provided for in 15A NCAC 02L .0107(g). [15A NCAC 02L .0107]
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11. Except as provided for in 15A NCAC 02L .0107(g), the Permittee shall ensure any landowner who is
not the Permittee and owns land within the compliance boundary shall execute and file with the Bertie
County Register of Deeds an easement running with the land containing the following items:
a. A notice of the permit and number or other description as allowed in 15A NCAC 02L .0107(f)(1);
b. Prohibits construction and operation of water supply wells within the compliance boundary; and
c. Reserves the right of the Permittee or the State to enter the property within the compliance boundary
for purposes related to the permit.
The Director may terminate the easement when its purpose has been fulfilled or is no longer needed.
[ 15A NCAC 02L .0107(f)]
12. Field 4 permitted herein has no setbacks. The original permit (Permit No. 3947) pre -dates
administrative code 15A NCAC 02H .02190), which was effective October 1, 1987. Since no
modifications or expansions have been made to the originally permitted facility, the facility is still
covered under the 15A NCAC 02H .0200 rules effective February 1, 1976, which contain no setback
requirements. [15A NCAC 02H .0200]
13. The facilities herein were permitted per the following setbacks:
a. Fields 5-1, 5-2, 5-3, and 5-4 were originally permitted September 12, 2005. The setbacks for spray
irrigation sites originally permitted or modified from February 1, 1993 to August 31, 2006 are as
follows (all distances in feet):
i. Each habitable residence or place of assembly under separate ownership:
4001
ii. Each private or public water supply source:
100
iii. Surface waters:
100
iv. Groundwater lowering ditches:
100
v. Surface water diversions (upslope):
100
vi. Surface water diversions (downslope):
100
vii. Each well with exception of monitoring wells:
100
viii. Each property line:
150 2
ix. Top of slope of embankments or cuts of two feet or more in vertical height:
15
x. Each water line:
10
xi. Each swimming pool:
100
xii. Public right of way:
50
xiii. Nitrification field:
20
xiv. Each building foundation or basement:
15
1 Habitable residences or places of assembly under separate ownership constructed after the
facilities herein were originally permitted or subsequently modified are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[15A NCAC 02H .02190)(5)]
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b. The storage and treatment units were modified September 12, 2005. The setbacks for storage and
treatment units originally permitted or modified from February 1, 1993 to August 31, 2006 are as
follows (all distances in feet):
i. Each habitable residence or place of assembly under separate ownership: 1001
ii. Each private or public water supply source: 100
iii. Surface waters: 50
iv. Each well with exception of monitoring wells: 100
v. Each property line: 50 2
vi. Nitrification field: 20
' Habitable residences or places of assembly under separate ownership constructed after the
facilities herein were originally permitted or subsequently modified are exempt from this
setback.
2 Setbacks to property lines are not applicable when the Permittee, or the entity from which the
Permittee is leasing, owns both parcels separated by the property line.
[15A NCAC 02H .02190)(5)]
M. OPERATION AND MAINTENANCE REQUIREMENTS
1. The Permittee shall operate and maintain the subject facilities as a non -discharge system. [15A NCAC
02T .0500]
2. The Permittee shall maintain an Operation and Maintenance Plan, which shall include operational
functions, maintenance schedules, safety measures, and a spill response plan. [15A NCAC 02T
.0507(a)]
3. Upon the Water Pollution Control System Operators Certification Commission's (WPCSOCC)
classification of the subject non -discharge facilities, the Permittee shall designate and employ a certified
operator in responsible charge (ORC), and one or more certified operators as back-up ORCs. The ORC
or their back-up shall operate and visit the facilities as required by the WPCSOCC. [15A NCAC 02T
.0117]
4. The Permittee shall maintain vegetative cover on the irrigation sites, such that crop health is optimal,
allows even effluent distribution, and allows inspection of the irrigation system. [15A NCAC 02T
.0507(b)]
5. The Permittee shall take measures to prevent effluent ponding in or runoff from the irrigation sites
listed in Attachment B. [15A NCAC 02T .0507(c)]
6. The Permittee shall not irrigate treated effluent during inclement weather, or when the soil is in a
condition that will cause ponding or runoff. [15A NCAC 02T .0505(x)]
7. Irrigation equipment shall be tested and calibrated once per permit cycle. [15A NCAC 02T .0507(d)]
8. Only treated effluent from the Avoca — Merry Hill WWTP shall be irrigated on the sites listed in
Attachment B. [15A NCAC 02T .0501]
The Permittee shall not allow vehicles or heavy machinery on the irrigation area, except during
equipment installation or maintenance activities. [15A NCAC 02T .0507(e)]
10. The Permittee shall prohibit public access to the wastewater treatment, storage, and irrigation facilities.
[15A NCAC 02T .0505(q)]
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11. The Permittee shall dispose or utilize generated residuals in a Division -approved manner. [ 15A NCAC
02T .0508, 02T .1100].
12. The Permittee shall not divert or bypass untreated or partially treated wastewater from the subject
facilities. [15A NCAC 02T .05050)]
13. Freeboard in the 75,000 gallon tertiary effluent lagoon and the 0.9 acre effluent storage pond shall not
be less than two feet at anytime. [15A NCAC 02T .0505(d)]
14. Gauges to monitor waste levels in the 75,000 gallon tertiary effluent lagoon and the 0.9 acre effluent
storage pond shall be provided. These gauges shall have readily visible permanent markings, at inch
or tenth of a foot increments, indicating the following elevations: maximum liquid level at the top of
the temporary liquid storage volume; minimum liquid level at the bottom of the temporary liquid
storage volume; and the lowest point on top of the dam. [15A NCAC 02T .0507(f)]
15. A protective vegetative cover shall be established and maintained on all berms, pipe runs, erosion
control areas, surface water diversions, and earthen embankments (i.e., outside toe of embankment to
maximum allowable temporary storage elevation on the inside of the embankment). Trees, shrubs, and
other woody vegetation shall not be allowed to grow on the earthen dikes or embankments. Earthen
embankments shall be kept mowed or otherwise controlled and accessible. [15A NCAC 02T .0507(g)]
16. Metering equipment shall be tested and calibrated annually. [ 15A NCAC 02T .0507(d)]
IV. MONITORING AND REPORTING REQUIREMENTS
1. The Permittee shall conduct and report any Division required monitoring necessary to evaluate this
facility's impact on groundwater and surface water. [15A NCAC 02T .0108(c)]
2. A Division -certified laboratory shall conduct all analyses for the required effluent, groundwater, and
surface water parameters. [15A NCAC 02H .0800]
3. Flow through the treatment facility shall be continuously monitored, and daily flow values shall be
reported on Form NDMR. Facilities with a permitted flow less than 10,000 GPD may estimate their
flow from water usage records provided the water source is metered. [15A NCAC 02T .0105(k), 02T
.0108(c)]
4. The Permittee shall monitor the treated effluent at the frequencies and locations for the parameters
specified in Attachment A. [15A NCAC 02T .0108(c)]
5. The Permittee shall maintain records tracking the amount of effluent irrigated. These records shall
include the following information for each irrigation site listed in Attachment B:
a. Date of irrigation;
b. Volume of effluent irrigated;
c. Site irrigated;
d. Length of time site is irrigated;
e. Continuous weekly, monthly, and year-to-date hydraulic (inches/acre) loadings;
f. Continuous monthly and year-to-date loadings for any non -hydraulic parameter specifically
limited in Attachment B;
g. Weather conditions; and
h. Maintenance of cover crops.
[15A NCAC 02T .0108(c)]
6. Freeboard (i.e., waste level to the lowest embankment elevation) in the 75,000 gallon tertiary effluent
lagoon and the 0.9 acre effluent storage pond shall be measured to the nearest inch or tenth of a foot,
and recorded weekly. Weekly freeboard records shall be maintained for five years, and shall be made
available to the Division upon request. [15A NCAC 02T .0108(c)]
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7. Three copies of all monitoring data (as specified in Conditions IV.3. and IV.4.) on Form NDMR for
each PPI and three copies of all operation and disposal records (as specified in Conditions IV.5. and
IV.6.) on Form NDAR-1 for every site in Attachment B shall be submitted on or before the last day of
the following month. If no activities occurred during the monitoring month, monitoring reports are still
required documenting the absence of the activity. All information shall be submitted to the following
address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T .0105(1)]
The Permittee shall maintain a record of all residuals removed from this facility. This record shall be
maintained for five years, and shall be made available to the Division upon request. This record shall
include:
a. Name of the residuals hauler;
b. Non -Discharge permit number authorizing the residuals disposal, or a letter from a municipality
agreeing to accept the residuals;
c. Date the residuals were hauled; and
d. Volume of residuals removed.
[15A NCAC 02T .0508(b)]
9. A maintenance log shall be kept at this facility. This log shall be maintained for five years, and shall
be made available to the Division upon request. This log shall include:
a. Date of flow measurement device calibration;
b. Date of irrigation equipment calibration;
c. Visual observations of the plant and plant site; and
d. Record of preventative maintenance (e.g., changing of equipment, adjustments, testing, inspections
and cleanings, etc.).
[15A NCAC 02T .0507(h)]
10. Monitoring wells MW-4, MW-5, MW-7, MW-8, and MW-9 shall be sampled at the frequencies and
for the parameters specified in Attachment C. All mapping. well construction forms, well abandonment
forms and monitoring data shall refer to the permit number and the well nomenclature as provided in
Attachment C and Figure 1. [15A NCAC 02T .0105(m)]
11. Two copies of the monitoring well sampling and analysis results shall be submitted on a Compliance
Monitoring Form (GW-59), along with attached copies of laboratory analyses, on or before the last
working day of the month following the sampling month. The Compliance Monitoring Form (GW-59)
shall include this permit number, the appropriate well identification number, and one GW-59a
certification form shall be submitted with each set of sampling results. All information shall be
submitted to the following address:
Division of Water Resources
Information Processing Unit
1617 Mail Service Center
Raleigh, North Carolina 27699-1617
[15A NCAC 02T .0105(m)]
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12. An annual representative soils analysis (i.e., Standard Soil Fertility Analysis) shall be conducted on
each irrigation site listed in Attachment B. These results shall be maintained at the facility for five
years, and shall be made available to the Division upon request. Each Standard Soil Fertility Analysis
shall include the following parameters:
Acidity
Exchangeable Sodium Percentage
Phosphorus
Base Saturation (by calculation)
Magnesium
Potassium
Calcium
Manganese
Sodium
Cation Exchange Capacity
Percent Humic Matter
Zinc
Copper
pH
[15A NCAC 02T .0108(c)]
13. Noncompliance Notification:
The Permittee shall report to the Washington Regional Office, telephone number [phone],
within 24 hours of first knowledge of the following:
a. Treatment of wastes abnormal in quantity or characteristic, including the known passage of a
hazardous substance.
b. Any process unit failure (e.g., mechanical, electrical, etc.) rendering the facility incapable of
adequate wastewater treatment.
c. Any facility failure resulting in a discharge to surface waters.
d. Any time self -monitoring indicates the facility has gone out of compliance with its permit
limitations.
e. Ponding in or runoff from the irrigation sites.
Emergencies requiring reporting outside normal business hours shall call the Division's Emergency
Response personnel at telephone number [phone], [phone], or [phone]. All
noncompliance notifications shall file a written report to the Washington Regional Office within five
days of first knowledge of the occurrence, and this report shall outline the actions proposed or taken to
ensure the problem does not recur. [15A NCAC 02T .0108(b)(1)(A)]
V. INSPECTIONS
1. The Permittee shall perform inspections and maintenance to ensure proper operation of the wastewater
treatment and irrigation facilities. [15A NCAC 02T .0507(i)]
2. The Permittee shall inspect the wastewater treatment and irrigation facilities to prevent malfunctions,
facility deterioration, and operator errors that may result in discharges of wastes to the environment,
threats to human health, or public nuisances. The Permittee shall maintain an inspection log that
includes the date and time of inspection, observations made, and maintenance, repairs, or corrective
actions taken. The Permittee shall maintain this inspection log for a period of five years from the date
of the inspection, and this log shall be made available to the Division upon request. [15A NCAC 02T
.0507(h), 02T .0507(i)]
3. Division authorized representatives may, upon presentation of credentials, enter and inspect any
property, premises, or place related to the wastewater treatment and irrigation facilities permitted herein
at any reasonable time for determining compliance with this permit. Division authorized
representatives may inspect or copy records maintained under the terms and conditions of this permit,
and may collect groundwater, surface water, or leachate samples. [G.S. 143-215.3(a)(2)]
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VI. GENERAL CONDITIONS
1. Failure to comply with the conditions and limitations contained herein may subject the Permittee to a
Division enforcement action. [G.S. 143-215.6A, 143-215.613, 143-215.6C]
2. This permit is effective only with respect to the nature and volume of wastes described in the permit
application, and Division -approved plans and specifications. [G.S. 143-215.1(d)]
3. Unless specifically requested and approved in this permit, there are no variances to administrative codes
or general statutes governing the construction or operation of the facilities permitted herein. [15A
NCAC 02T .0105(n)]
4. The issuance of this permit does not exempt the Permittee from complying with all statutes, rules,
regulations, or ordinances that other jurisdictional government agencies (e.g., local, state, and federal)
may require. [15A NCAC 02T .0105(c)(6)]
5. If the permitted facilities change ownership, or the Permittee changes their name, the Permittee shall
submit a permit modification request on Division -approved forms. The Permittee shall comply with
all terms and conditions of this permit until the permit is transferred to the successor -owner. [G.S. 143-
215.1(0)]
6. The Permittee shall retain a set of Division -approved plans and specifications for the life of the facilities
permitted herein. [15A NCAC 02T .0105(o)]
7. The Permittee shall maintain this permit until the proper closure of all facilities permitted herein, or
until the facilities permitted herein are permitted by another authority. [15A NCAC 02T .01050)]
8. This permit is subject to revocation or modification upon 60-day notice from the Division Director, in
whole or part for:
a. violation of any terms or conditions of this permit or Administrative Code Title 15A Subchapter
02T;
b. obtaining a permit by misrepresentation or failure to disclose all relevant facts;
c. the Permittee's refusal to allow authorized Department employees upon presentation of credentials:
i. to enter the Permittee's premises where a system is located or where any records are required
to be kept;
ii. to have access to any permit required documents and records;
iii. to inspect any monitoring equipment or method as required in this permit; or
iv. to sample any pollutants;
d. the Permittee's failure to pay the annual fee for administering and compliance monitoring; or
e. a Division determination that the conditions of this permit are in conflict with North Carolina
Administrative Code or General Statutes.
[15A NCAC 02T .0110]
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9. Unless the Division Director grants a variance, expansion of the facilities permitted herein shall not
occur if any of the following apply:
a. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has been convicted of
environmental crimes under G.S. 143-215.6B, or under Federal law that would otherwise be
prosecuted under G.S. 143-215.6B, and all appeals of this conviction have been abandoned or
exhausted.
b. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has previously abandoned
a wastewater treatment facility without properly closing the facility.
c. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid a civil
penalty, and all appeals of this penalty have been abandoned or exhausted.
d. The Permittee or any parent, subsidiary, or other affiliate of the Permittee is currently not compliant
with any compliance schedule in a permit, settlement agreement, or order.
e. The Permittee or any parent, subsidiary, or other affiliate of the Permittee has not paid an annual
fee.
[ 15A NCAC 02T .0120(b), 02T .0120(d)]
10. This permit shall not be renewed if the Permittee or any affiliation has not paid the required annual fee.
[ 15A NCAC 02T .0120(c)]
Permit issued this the 17`h day of June 2019
NORTH CAROLINA ENVIRONMENTAL MANAGEMENT COMMISSION
?Linda Culpepper, Director
Division of Water Resources
By Authority of the Environmental Management Commission
Permit Number WQ0005910
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STATE OF NORTH CAROLINA :
N-Loll] a
LEASE AGREEMFNr
This LEASE AGRERAENT (the -Lease") is made and entered into by and between
AVOCA TECHNICAL OF DELAWARE, INC., A Delaware Corporation (the "Landlord'), and
AVOCA, INC., a Nardi Carolina corporation (the "TenuV) as of the 1st day of April, 2003.
WITNESSETH:
1. PREM ES. In consideration of the obligation of Tenant to pay rent as herein provided,
and in consideration of the other terms, provisions and covenants hereof, Landlord bereby demises
and leases to Tenant, and Tenant hereby accepts and leases from Landlord, that certain real
property located in Bertie County, North Carolina consisting of approximately 197.53 acres as
more particularly set forth in the attached Exhibit A ("Ladd"), together with all improvements
located thereon (the "Improvements") and all rights, privileges, easements, appurtenances and
imnnrnities belonging to or in any way pertaining to the property (the Land and the Improvements
being collectively referred to herein as the "Pretr ices" or the "Piope ty").
2. TFRM. This Lease shall be for a term of Ninety -Nine (99) years commencing an April
1, 2003 (the "Commeneenmart Date's and terminating at midrright on March 31, 2102 (the "Lease
Term").
Tenant hereby accepts the Premises and acknowledges that the Premises and other
improvemrcnts are in good and satisfactory condition as of the date hereof. Tenant fiudw
acknowledges that no representations as to the repair of the Premises, nor promises to alter,
remodel or improve the Premises have been made by Landlord unless such are expressly set forth
in this Lease.
RM. Tenant agrees to pay rent for the first lease year in the amount of $219,600.00 per
year, payable monthly in the amount of $18,300.00, to Landlord as rent for the Premises, in
advance, without demand, deduction or set off in lawinl money of the United States. Beginning on
the fast anniversary of the Commencement Date, and continuing on each anniversary thereafter,
Rent shall be adjusted as mutually agreed by Landlord and Tenant. Landlord and Tenant agree to
negotiate in good faith to determine Rent for each subsequent lease year and shall begin such
negotiations at least thirty (30) days prior to the end of each lease year. If Landlord and Tenant
cannot agree to the amoant of Rent for any subsequent lease year, this lease shall terminate, and
Landlord and Tenant shall be deemed to have a month -to -month lease in regard to the Premises on
the same tunas and conditions as set forth herein except that monthly Rent shall be the same
amuumt as the last moth of the Lease prior to such termination, and either Landlord or Tenant
shall be entitled to terminate the month -to -mouth lease with at least thirty (30) days prior written
notice to the other.
All mo"y installments shall be due and payable on or before the first day of each
calendar m on im during the hereby demised tam except that the rental payment for any h2ctional
1758424

calendar month at the beginning or end of the Lease Term shall be prorated. Notwithstanding the
above, Tenant shall have one (1) five (5) day late payment period annually as it relates to the
monthly installments of Rent. In addition to such remedies as may be provided under the Default
provisions of this Lease, Landlord shall be entitled to a late charge of five percent (5%) of the
amount of each monthly rental payment not received by the fifth day of the month when due, and a
charge of the lower of a lawful bad check fee or five percent (5%) of the amount of any check
given by Tenant not paid when first presented by Landlord.
TAXES. Landlord shall pay all taxes, assessments and governmental charges of any kind
and nature whatsoever levied or assessed against the Property by any municipality, county, or other
governmental agency (the "Taxes").
INSURANCE, Beginning on the Commencement Date and continuing for the entire Lease
Term hereof', Tenant shall maintain policies of insurancc and pay the insurance premiums for
public liability on the driveways, parldng lots and other surrounding exterior areas, and fire and
Wended coverage on the buildings and other improvements located on the premises, in accordance
with Par4graph 12 herein. The fire and extended coverage insurance of the buildings and other
improvements located on the Premises shall list the Landlord as an additional insured, shall list any
secured lender that is the beneficiary in regard to a deed of trust on the Property as an insured
mortgagee and shall contain a clause wherein such insurance cannot be cancelled without first
giving thirty (30) days prior written notice to Landlord. The public liability insurance shall list the
Landlord as an additional insured and shall contain a clause wherein such insurance cannot be
cancelled without first giving thirty (30) days prior written notice to Landlord. If the first year for
which such premiums are due or the final year of the term hereof does not coincide with the year
upon which the insurance rate is determined, the pramurn for the portion of that year shall be
prorated according to the number of months during which Tenant was in possession of the
Premises.
PROVISIONS TO SURVIVE LEASE TERMINATION. The provisions of this section 3
shall survive the termination ofthe Lease or any extension or renewal hereof.
4. JILE. The Premises shall be used only for the operation of the Tenant's business of
plant extract and tolling, and other uses related to the same including research and development
and office use. Tenant shall at its own cost and expense obtain any and all licenses and permits for
any such use. Tenant shall comply with all governmental laws, ordinances and regulations relating
to the use of the Premises, and shall promptly comply with all governmental orders and directives
for the correction, prevention and abatement of nuisances in or upon, or connected with, the
Premises, all at Tenant's sole expense. Tenant will not permit the Premises to be used for any
purpose or in any manner (including, without limitation, any method of storage) that would render
the insurance thereon void. Tenant shall give notice to Landlord immediately upon the occurrence
of any accident in the Premises or upon Tenant's discovery of any defects thereon or in any fixtures
or equipment located therein or upon the occurrence of any emergency in the Premises.
5. Intentionally Deleted.
6. TENANT'S REPAIRS AND MAINTENANCE. Tenant, at its sole cost and
expense, shall be responsible for maintairhing and repairing the Premises, including without
limitation (i) the roof', downspouts, gutters, foundation, utility lines located outside any buildings,
and the structural soundness of the exterior walls of any buildings, concrete floors, all exterior
painting and entrances, in good repair; (H) any damage to the Premises caused by the negligence of
Tenant or Tenant's employees, agents or invitees, or caused by Tenant's default hereunder,, (iii)
r7ssrivh

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

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

12. FIRE AND CASUALTY DAMAGE. Tenant agrees to maintain standard fire
and extended coverage insurance covering the buildings and other improvements located on the
Premises in an amount not less than eighty percent (80%) (or greater percentage as may be
necessary to comply with the provisions of any co-insurance clauses of the policy) of the
"replacement rose' thereof as such term is defined in the Replacement Cost Endorsement to be
attached thereto, insuring against the perils of fire, lightning and extended coverage, such
coverages and endorsements to be as defined, provided and limited in the standard bureau forms
proscribed by the msurance regulatory authority for the State of North Carolina. Subject to the
provisions of this section 12, such insurance shall list the Landlord as an additional insured, shall
list any secured lender that is the beneficiary in regard to a deed of trust on the Property as an
insured mortgagee and shall contain a clause wherein such insurance cannot be cancelled without
first giving thirty (30) days prior written notice to Landlord.
if the Premises should be damaged or destroyed by any peril covered by the insurance to
be provided under this section 12, Tenant shall give immediate written notice thereof to Landlord.
If the Premises should be toWly destroyed by any peril covered by the insurance to be
provided under this section 12, or if the Premises should be so damaged thereby that rebuilding or
repairs cannot in Landlord's reasonable estimation be completed within three hundred sixty (350)
bays after the date upon which Landlord is notified by Tenant of such damage, this Lease shall
terminate and the rent shall be abated during the unexpired portion of this Lease, effective upon the
date of occurrence of such damage_
if the Premises should be damaged by any peril covered by the insurance to be provided
under this section I2, but only to such extent that rebuilding or repairs can, in Landlord's
reasonable estimation, be completed within three hundred sixty (3$0)days after the date upon
which Landlord is notified by Tenant of such damage, this Lease shall not termirmte, and Landlord
shall, at its sole cost and expense, thereupon proceed with reasonable diligence to rebuild and
repair the Premises to substantially the condition in which it existed prior to such damage, except
that Landlord shall not be required to rebuild, repair or replace any part of the partitions, fixtures,
additions and other improvements which may have been placed in, on or about the Premises by
Tenant. If the Premtscs arc untenantable m whole or in part following such damage, the rent
payable hereunder during the period in which it is umtenantable shall be reduced to such extent as
may be fair and reasonable under all of the circumstances. If Landlord has not so restored or
repaired the Promises within five hundred and forty (540) days from the date of the casualty,
Tenant shall be entitled to terminate this Lease at any time by giving written notice thereof to
Landlord prior to the date that the Premises is so rebuilt or repaired.
Notwithstanding anything contained herein to the contrary, in the event the holder of any
indebtedness secured by a mortgage or deed of trust covering the Premises es requires that the
insurance proceeds apply to such indebtedness, then Landlord shall have the right to terminate this
Lease by delivering written notice of termination to Tenant within fifteen (15) days after such
requirement is made by any such holder, whereupon all rights and obligations hereunder thereafter
accruing shall cease and terminate.
Anything in this Lease to the contrary notwithstanding, Landlord hereby releases and waives unto
Tenant (including all partners, stockholders, officers, directors, employees and agents thereof), its
successors and assigns, and Tenant hereby releases and waives unto Landlord (including all
partners, stockholders, officers, directors, employees and agents thereof), its successors and
assigns, all rights to claim damages for any injury, loss, cost or damage to perwas or to the
Premises or any other casualty, as long as the amount of such injury, loss, cost or damage (i) has
h?Ss420

been paid either to Landlord. Tenant, or any other person, firm or corporation, under the terms of
any Property, General Liability, or other policy of msuranco, or (ii) wmid bavc bem cflvcred undo
any insurance reWired to be in place under the terms of this Lease, to the extent such releases or
waivers are permitted under applicable law. As respects all policies of insurance curried or
maintained pursuant to this Lease and to the eadent permitted under such policies, Tenant and
Landlord each waive the insurance carriers' rights of subrogation
13. TENANT'S COMPLIANCE - INSURANCE REOUIR MMENfS. Tenant shall
comply with all applicable laws, ordinances and regulations affbcting the Premises.
Throughout the terse of this Lease, Tenant at its sole cost and expense shall keep or cause
to be kept for the mutual benefit of Landlord, Landlord's managing agent, if any, and Tenant (with
appropriate cross -liability endorsemcnts so showing) through companies licensed to do business in
North Carolina having a Beses rating of at least A-Ml (as the same may be adjusted from time to
time) public liability and property damage insurance with combined single limit coverage of at
least $25,000,000.00, which policies insure against all liability of Tenaru, Tenant's authorized
representatives, and anyone for whom Tenant is responsible arising out of and in connection with
Tenant's use of the Premises, and shall insure Tenant's performance of the indemnity provisions
contained herein. Not more frequcutly than once each year, Landlord may require the limits to be
increased if in its reasonable judgment (or that of its mortgagee) the coverage is insufficient.
Tenant shall also insure its personal property located in the Premises, and shall neither have nor
make any claim against Landlord for any loss or damage to the same, regardless of the cause
thereof. The proceeds from any such policy covering personal property shall be used by Tenant for
the replacement of Tenant's personal property.
Prior to taking possession of the Premises and thereafter at least ten (10) business days
prior to the renewal dates thereof, Tenant shall deliver to Landlord copies of original policies or
satisfactory certificates thereof. All such policies shall be non -assessable and shall contain
language, to the extent obtainable, that (A) any loss shall be payable notwitbztanding any act or
negligence of Landlord or Tenant that might otherwise result in forfeiture of the insurance, (B) that
the policies are primary and non-contributing with any insurance that Landlord may carry, and (C)
that they cannot be canceled or changed except after thirty (30) days notice to Landlord.
Tenant shall indemnify and hold Landlord harmless from and against any and all claims
resulting in bodily injury and/or property damage arising out of (A) Tenant's use of the Premises or
any other part thereof, (B) any activity, work, or other thing done, permitted or suffered by Tenant
in or about the Premises, or any part thereof, (C) any breadr or default by Tenant in the
performance of any of its obligations under this Lease, or (D) any act of negligence of Tenant, or
any officer, agent, employee, contractor, servant, invitee or guest of Tenant; and in each case from
and against any and all damages, losses, liabilities, lawsuits, casts and expenses (including
attorneys' foes at all tribunal levels) arising in connection with any such chum or claims as
described in (A) through (D) above, or any action brought them. If such action be brought
against Landlord, Tenant upon native from Landlord shall defend the same through counsel
selected by Tenant's insurer or other counsel, in each case acceptable to Landlord. Tenant assumes
all risk of damage or loss to its property or injury or death to persons in, on or about the Premises,
from all causes except those for which the law imposes liability on Landlord regardless of any
attempted waiver thereof and Tenant hereby waives such claims in respect thereof against
Landlord. The provisions of this paragraph shall survive the termination of this Lease.
Landlord shall indemnify and hold Tenant harmless from and against any and all claims
resulting in bodily injury and/or property damage arising out of (A) any activity, work, or other
1158420

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

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

Doclare immediately due and payable the entire amount of all Rent thcn remaining to be
paid under this Lease for the balance of the Lease Term, discounted at the rate of ten percent (100/9)
per year, which amount shall be offset by the amount of rent that Landlord would be able to collect
by reletting the Premises less the expenses that would be incurred in relating the Premises
(including without limitation the amortized portion of tenant improvements and reasonable
attorneys fees that apply to the remaining Lease Term which such amounts shall be amortized over
the term of such new lease for which the Landlord would be able to relet the Premises), and taking
into account the time that it would take to Find a new tenant, which amount shall also be discounted
at the rate of ten percent (1011/6) per year. This provision shall not otherwise affect Tenant's
monthly obligation to pay additional rent as provided herein.
Enter upon the Premises, by force if necessary, without being liable for prosecution or any
claim for damages therefor, and do whatever Tenant is obligated to do under the term of this Lease;
and Tenant agrees to reimburse Landiwd, on demand for any expenses which Landlord may incur
in thus effecting t ing compliance with that which Tenant is obligated to do under the terms of this
Lease, and Tenant agrees to reimburse Landlord on demand for any expenses which Landlord may
incur in thus effecting compliance with Tenant's obligabons under this Lease, and Tennant further
agrees that landlord shall not be liable for any damages resulting to Tenant from such action,
whether caused by the negligence of Landlord or otherwise.
Landlord shall have the duty to pursue all reasonable meatrs to mitigate any damages to it
incurred as a result of any event of default hereunder.
Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other
remedies herein provided by law or equity, nor shall pursuit of any remedy herein provided
constitutc a forfeiture or waiver of any rend due to Landlord hereunder or of any damages accruing
to Landlord by reason of the violation of any of the terms, provision and covenants herein
contained. No act or thing done by Landlord or its agents during the term hereby granted shall be
deemed a termination of this Lease or an acceptance of the surrender of the Premises, and no
agreement to terminate this Lease or accept a surrender of the Premises shall be valid unless in
writing signed by Landlord. No waiver by Landlord of any violation or breach of any of the terms,
provisions and covenants herein contained shall be deemed or construed to constitute) a waiver of
any other violation or breach of any of the term, provisions and covenants herein contained.
Landlord's acceptance of the payment of rental or other payments hereunder after the occurrence of
an event of default shall not be construed as a waiver of such default; unless Landlord so notifies
Tenant in writing, and no receipt of money by Landlord from Tenant after the termination of this
Lease or after service of any notice or after the commencement of any suit or after final judgment
for possession of the Premises shall reinstate, continue or extend the term of this Lease or affect
any such termination, notice, suit or judgment, unless Landlord so notifies Tenant in writing.
Forbearance by Landlord to enforce one or more of the remedies herein provided upon an event of
default shall not be deemed or construed to constitute waiver of such default or of Landlord's right
to enforce any such remedies with respect to such default or any subsequent default, if, on account
of any breach or default by Tenant or Landlord in regard to the obligations under the terms and
conditions of this Lease, it shall become necessary or appropriate for the non -defaulting party to
employ or consult with an attorney canvmmg such breach or default by the defaulting party, or to
enforce or defend any of the non -defaulting party's rights or remedies hereunder, the defaulting
party agrees to pay any reasonable attorneys' fees so incurred.
19. rntentionaliy Deleted.
r75842vr

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

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

Favirontnental Response, Compensation and Liability Act, any so-called "Superfimd" or
"Superhan" law, or any other Federal, State, Local or other statute, law, ordinance, code, rule,
regulation, order or decree regulating, relating to or imposing liability or standards of conduct
concerning any Hazardous Material); and the provisions of and undertal=p and indemnification
set out in this section 24 shall survive the early termination or expiration of this Lease, and shall
continue to be a personal liability, obligation and indemnificatiott of Tenant, binding upon Tenant
for a period of two years following such early termination or expiration of this Lease. The
provisions of the preceding sentence shall govern and control over any inconsistent provisions of
this Lease. For purposes of this Lease, "Hazardous Material" means and includes any hazardous
substance or any pollutant or contaminant defined as such in (or for purposes of) the
Comprehensive Environmental Response, Compensation, and Liability Act, any so-called
"Superfund" or "Superlien" law, the Toxic Substances Control Act, or any other Federal, State,
Local or other statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to,
or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste,
substance or material, as now or at any time hereafter is in effect, or any other hazardous, toxic or
dangerous, waste, substance or material.
25. b¢ISCEUAtMM. Words of any gender used in this Lease shall be held and
construed to include any other gender and words in the singular number shall be held to include the
plural, unless the context otherwise required.
The terms, provisions, covenants and conditions contained in this Lease shall apply to,
inure to the benefit of and be binding upon the patties hereto and upon their respective heirs, legal
representatives, successors and permitted assigns, except as otherwise herein expressly provided.
Landlord shall have the right to assign any of its rights and obligations under this Lease. Bad party
agrees to fiunish to the other, promptly upon demand, a corporate resolution, proof of clue
authorization by partners, or other appropriate documentation evidencing the due authormwn of
such party to enter into this Lease.
The captions inserted in this Lease arc for convenience only and in no way define, limit or
otherwise describe the scope or intent of this Lease, or any provision hereof, or in any way affect
the interprotation of this Lease.
Tenant agrees from time to time, within ten (10) business days after request of Landlord, to
deliver to Landlord, or Landlord's designee, an estoppel certificate stating that this pease is in full
force and effect, the date to which rent has been paid, the unexpired tarn of this Lease and such
other matters pertaining to this Lease as may be requested by Landlord. It is understood and agreed
that Tenant's obligation to fiunish such estoppel certificates in a timely fashion is a material
inducement for Landlord's execution of this Luse.
This Lease may not be altered, clanged or amended except by an instrument in writing
signed by both parties hereto.
All obligations of Tenant heminder not fully peffoimed as of the expiration or earlier
termination of the term of this Lease shall survive the expiration or earlier termination of the term
hereof!, including, without linntawn, all payment obligations concerning the condition of the
Premises. Tenant 9ha11 also, prior to vacating the Premises, pay to Landlord the amount, as
estimated by Landlord, of Tenant's obligation hereunder for real estate taxes for the year in which
the Lease expires or term rules. All such amounts shall be, used and held by Landlord for payment
of such obligations of Tenant hereunder, with Tenant being liable for any additional costs therefor
upon demand by Landlord, or with airy excess to be returned to Tenant aft all such obligations
175342a1

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

Signatme Page to Lease
Regarding Bertie County Propedy
LANDLORD:
Avoca Technical of Daiaware, Inc.,
a Drlaware
By:
Na11�G:
Tide:
TENANT:
Avoca, Ync.,
a North Carolina corporation
By- l
Name: A
Title:
175842v1