APPLICATION and AGREEMENT for IRREVOCABLE STANDBY LETTER of CREDIT Truist Bank ATTN

APPLICATION AND AGREEMENT FOR IRREVOCABLE STANDBY LETTER OF CREDIT

Advise by 0 Full Details by SWIFT Truist Bank 1E1 REGISTERED MAIL OR COURIER ATTN: Domestic Standby Letter of Credit Dept. 7701 Airport Center Dr., Suite 2600 Greensboro, NC 27409

Irrevocable Standby Letter of Credit No: Date: 06 June 9, 2020

Beneficiary (Name and Address): Letter of Credit Amount (in US Dollars): North Carolina Utilities Commission $10,000.00 4325 Mail Service Center Raleigh, NC 27699

Applicant (Name and Address): Expiration Date: August 4, 2021 Water Resource Management, Inc. 151 Mr Bish Blvd. Boone, NC 28607

The undersigned Applicant hereby requests that you issue an Irrevocable Stand-By Letter of Credit, as follows:

Available upon presentation at our office above of Beneficiary's draft(s), at sight unless otherwise stated, drawn at your option, on you or any of your correspondents, not later than 4:00 pm Eastern time on or before the Expiration Date (or automatically extended Expiration Date) when accompanied by the following documents:

The original Letter of Credit and amendments, if any;

Sight draft duly endorsed by the Beneficiary's authorized representative and bearing the clause "DRAWN UNDER TRUIST BANK IRREVOCABLE STANDBY LETTER OF CREDIT NO. 06"; and

Beneficiary's statement on its letterhead signed by its authorized representative that Applicant has defaulted in payment or performance of its obligations and Beneficiary is entitled to draw under the Letter of Credit.

Special instructions and/or other conditions:

Ej The Irrevocable Standby Letter of Credit shall be in the form attached hereto.

0 The Irrevocable Standby Letter of Credit shall contain an annual auto-renewal provision unless Lender gives not less than days' notice to Beneficiary that it will not allow renewal.

0 This Letter of Credit may be assigned and transferred by you to a successor beneficiary in full and not in part; provided that no such transfer and/or assignment shall be effective until we receive a signed Notice of Transfer in the form of Exhibit A hereto. All fees for such transfer shall be for the account of the Applicant.

0 This Letter of Credit is to be issued under existing line of credit or loan no. . The availability under this line of credit or loan will be reduced by the amount of this Letter of Credit.

This Letter of Credit is issued subject to the UCC and Z ISP98 or El UCP, as hereinafter defined.

- 1 - Form 1893 Fees and Charges: The Issuance Fee and other fees and charges for this Letter of Credit are payable as follows: Issuance Fee $350.00 ❑ % of the Letter of Credit Amount ❑ Payable annually as long as the Letter of Credit remains open Transfer Fee ❑ $

Automatic Debit 0 Lender is authorized to debit from Applicant's deposit account any and all fees designated above when due and payable. Deposit Account Number: 5194250314

IRREVOCABLE STANDBY LETTER OF CREDIT AGREEMENT

In consideration of the issuance by the Lender of one or more irrevocable standby letters of credit in accordance with this Application, the Lender and the Applicant agree as follows with respect to each Credit issued:

1. DEFINITIONS:

(a) "Adjusted LIBOR Rate" means a rate of interest per annum equal to the sum obtained by adding (i) the ❑ One Month LIBOR plus (ii) N/A % per annum (the "Margin"), which shall be adjusted monthly on the first day of each LIBOR Interest Period. If the first day of the month falls on a date when the Lender is closed, the Adjusted LIBOR Rate shall be determined as of the last preceding business day. The One Month LIBOR means the average rate (rounded upwards, if necessary, to the next higher 1/16th of 1.0%) quoted on a Bloomberg Screen or any quoting service or commonly available source utilized by Lender on the determination date for deposits in U.S. Dollars offered in the London Interbank Market for one month. LIBOR Interest Period means (i) a period of one calendar month applicable to any LIBOR Advance which shall begin on the first day of any month notwithstanding the Expiry Date of the Credit; provided, however, that a LIBOR Interest Period may be less than one calendar month in and only in the calendar month in which the obligation originates or matures. In the event that Lender shall determine, which determination shall be final, conclusive and binding, that One Month LIBOR is unavailable, is no longer reported, an adequate and fair means does not exist for ascertaining the One Month LIBOR interest rate, or Lender has adopted one or more rates to replace One Month LIBOR, then the Applicable Rate shall be Standard Rate plus the Margin adjusted daily and subject to any Maximum Rate or Minimum Rate without any notice to or action or consent by the Borrower. Standard Rate means a rate per annum equal to the Prime Rate with applicable spread adjustment as determined by Lender in its sole discretion to generally align the Prime Rate with One Month LIBOR.

(b) "Applicable Rate" means an interest rate per annum of or equal to: ❑ N/A%; Prime Rate plus 1.00% adjusted daily; ❑ WSJ Prime Rate plus NN/A% adjusted daily; or ❑ the Adjusted LIBOR Rate. Any change in the interest rate resulting from a change in the Prime Rate or WSJ Prime Rate shall become effective as of the opening of business on the effective date of any change in the Prime Rate or WSJ Prime Rate. If checked here ❑, the interest rate will not exceed a fixed rate of N/A%; and if checked here El, the interest rate will not decrease below a fixed rate of 5.25 %.

(d) "Application" means this Application and Agreement for Irrevocable Standby Letters of Credit, as it may be amended from time to time.

(e) "Beneficiary" means the entity or person designated on the Application as Beneficiary.

(f) "Clean Advances" means advances made pursuant to a Credit containing provisions for one or more payments by the Lender without the presentation of documents other than a draft or other simple demand for payment.

(9) "Credit" means one or more irrevocable standby letters of credit, and any substitutions, extensions, and amendments thereof, issued by the Lender in accordance with the Application, whereby the Lender acting at the request and on the instruction of the Applicant or on its own behalf:

(I) shall make a payment to or to the order of a third party or to accept and pay drafts drawn by the Beneficiary, or authorizes another lender to effect such payment or to accept and pay such drafts, or

(ii) authorizes another lender to negotiate drafts against stipulated documents, provided the terms and conditions contained herein are complied with, or

- 2 - Form 1893 (iii) incurs a deferred payment undertaking.

(h) "Default Rate" means a rate of interest per annum equal to fifteen percent (15.0%) calculated on the basis of a year consisting of 360 days; provided, however, that such rate shall not exceed the highest rate permitted by applicable law.

(i) "Draft" means an instrument, whether negotiable or non-negotiable, that orders the payment of money.

(j) "Expiry Date" or "Expiration Date" means the date specified in the Application as the last date on which drafts may be presented for payment under the Credit. If the Expiry Date is a bank holiday, the last date on which the draft may be presented is the first banking day following the holiday.

(k) "Instrument" means any draft, bill of exchange, cable or written demand for payment.

(I) "ISP98" means International Standby Practices (ISP 98), ICC Publication No. 590.

(m) "Lender" means Truist Bank, a North Carolina banking corporation, having executive offices in Winston-Salem, North Carolina, and its successors and assigns.

(n) "Prime Rate" means the rate of interest per annum announced by the Lender from time to time as its Prime Rate, which is one of several rate indexes employed by the Lender when extending credit and may not necessarily be the Lender's lowest lending rate.

(o) "Property" means goods and merchandise and all documents relative thereto, securities, funds, choses in action, and any other form of property, whether real, personal, or mixed, and all rights or interests therein.

(P) "Security Agreement" means an agreement that creates a security interest in favor of the Lender.

(q) "Uniform Commercial Code" or "UCC" means the Uniform Commercial Code in effect in the State of North Carolina, as amended from time to time.

(r) "Uniform Customs and Practice" or "UCP" means the Uniform Customs and Practices for Documentary Credits — 2007 Revision, International Chamber of Commerce Publication 600, and any subsequent revision thereof.

(s) "WSJ Prime Rate" means the rate of interest per annum published in the "Money" section of The Wall Street Journal as the Prime Rate, which is one of several rate indexes employed by the Lender when extending credit and may not necessarily be the Lender's lowest lending rate.

Any capitalized terms herein that are not defined have the meanings ascribed to them in the UCC, ISP98 or the UCP, as applicable.

2. UNITED STATES CURRENCY DRAFTS. As to Instruments drawn or purporting to be drawn under the Credit which are payable in the United States currency: in the case of each sight draft, demand or receipt, Applicant shall pay on demand to Lender or order, at any of the Lender's offices as may be designated by the Lender, in immediately available United States currency, the amount of each draft. Any amount not promptly paid by Applicant to reimburse Lender for any Instrument paid shall accrue interest at the Applicable Rate until payment in full is received, provided; however, that failure to immediately reimburse the Lender for any instrument paid shall be a default under this Application and such amount shall, at the option of Lender, accrue interest at the Default Rate, until paid in full.

3. FOREIGN CURRENCY DRAFTS. As to Instruments drawn or purporting to be drawn under the Credit which are payable in currency other than United States currency: (a) in the case of each sight draft, demand or receipt, Applicant shall on demand pay to Lender or to order, at any of Lender's offices as may be designated by Lender, in immediately available United States currency, the equivalent of the amount paid at Lender's then current selling rate of exchange at a rate determined by Lender in its sole discretion; for cable transfers to the place of payment in the currency in which such draft, demand or receipt is payable, with interest from the date of payment of the draft; and (b) in the case of each time instrument, Applicant shall on demand pay to Lender or to order in immediately available United States currency but in any event in sufficient time to allow payment to reach its destination not later than one (1) business day prior to maturity, the equivalent of the amount of the time instrument, in United States currency at the Lender's then current selling rate of exchange for cable transfers to the place of payment in the currency in which the time instrument is payable. If for any reason, there is no generally current rate of exchange for effecting cable transfers, Applicant shall pay to Lender on demand an amount in United States currency equivalent to the actual cost to Lender of settlement of Lender's obligation to the holder of the Instruments, plus interest at the Applicable Rate from the date of settlement through the date of Applicant's payment. Applicant shall comply with all governmental exchange

- 3 - Form 1893 regulations applicable to the Credit, Instrument, or payments made relative thereto, and shall pay to Lender on demand in United States currency such amount as the Lender may be required to expend on account of such regulations. Any amount not promptly paid by Applicant to reimburse Lender for any foreign currency draft paid shall accrue interest at the Applicable Rate until payment in full is received, provided, however, that failure to immediately reimburse Lender for any foreign currency draft paid by Lender shall be a default under this Application and such amount shall, at the option of Lender, accrue interest at the Default Rate, until paid in full.

4. CLEAN ADVANCES. If Applicant requests the issuance of a Credit containing provisions for Clean Advances, Lender may in its discretion include such provisions in the Credit as the Lender deems appropriate under which Lender or other party entitled to negotiate drafts under the Credit may, upon the request in writing from Beneficiary, make one or more Clean Advances on or prior to the Expiry Date. The aggregate of such advances shall not be more than the amount specified for Clean Advances in this Application, and in no event shall any advance exceed the amount remaining available under the Credit at the time of advance. Applicant shall on demand pay to Lender or to order in immediately available United States Currency the amount of the Clean Advances with interest for the periods in which such amount is outstanding at a rate to be determined in Lender's discretion. Neither the Lender nor any other bank shall have any liability for any wrongful use of the funds so advanced.

5. EXPENSES/ATTORNEY'S FEES. Applicant shall pay on demand, all charges and expenses, including all reasonable attorney's fees, court costs, if any, whether or not a lawsuit is filed and including any bankruptcy proceedings, and other related expenses incurred by Lender for the enforcement of any of its rights hereunder, or which may be paid or incurred by Lender in connection with the administration of this Credit, together with interest thereon at the Applicable Rate where chargeable.

6. PAYMENTS OF INSTRUMENTS. Lender may honor, accept, pay, or purchase any Instrument presented to it if such Instrument and the required documents are presented on or before the Expiry Date.

7. DOCUMENTS. Except as to instructions given by Applicant in writing in this Application expressly to the contrary prior to Lender's issuance of the Credit: (a) Lender and its correspondents may receive and accept any documents issued or purporting to be issued by or on behalf of Beneficiary; (b) Lender and its correspondents may honor Drafts for partial payment; and (c) Lender and any of its correspondents may honor any Instruments or other documents otherwise in order purportedly signed or issued by an administrator, executor, trustee in bankruptcy, debtor in possession, assignee for the benefit of creditors, liquidator, receiver or other legal representative of the party authorized under the Credit to draw or issue such Instruments or other documents.

8. COLLATERAL SECURITY. To secure the payment and performance of any and all obligations and liabilities of Applicant under this Application, and further to secure any and all other obligations and liabilities owed by any Applicant to Lender, absolute or contingent, due or to become due, now existing or hereafter arising (collectively, "Obligations"), Applicant hereby grants and conveys to Lender a security interest and lien in the following property (the "Collateral"): (a) all shipping documents, warehouse receipts, policies or certificates of insurance and other documents accompanying or relative to Instruments drawn under the Credit; (b) all Property shipped under or pursuant to or in connection with the Credit, or in any way related to the Credit and to any of the Instruments drawn thereunder; (c) all property, including balances in all deposit accounts maintained with Lender, or marketable securities of Applicant now or at any time in Lender's possession or control or securities accounts and financial assets maintained with Lender, or the control of a third party acting in Lender's behalf, whether for express purpose of being used by Lender as collateral or any other purpose, including such property as may be in transit by mail or carrier to or from Lender; (d) the real property and improvements described in a Deed of Trust granted by N/A dated N/A, recorded in the Public Records of N/A County, N/A; (e) any property or assets of Applicant or any third party in which Lender has been granted a lien or security interest to secure the Obligations pursuant to any security agreement, pledge, assignment or other security instrument executed by Applicant or such third party; (f) all personal property described in any mortgage, deed of trust, security deed, assignment, Security Agreement or any pledge agreement executed by any Applicant to secure any other loan or obligation to Lender; and (g) the proceeds of each and all of the foregoing. Applicant, upon Lender's demand, shall deliver, convey, transfer, or assign to Lender, as additional Collateral for the Obligations, additional property of a value and character satisfactory to Lender, or to make such cash payments or deposits as Lender may require. Lender may, but is not obligated to, transfer and register in the name of the Lender or its nominee all or any part of the Collateral, and is hereby authorized to do so before or after the maturity of any of the Obligations with or without notice to Applicant. This Application shall constitute a Security Agreement under the UCC. Applicant shall execute such other documents and/or security agreements deemed necessary or appropriate by Lender to evidence and perfect its liens and security interest in any of the Collateral. Applicant authorizes Lender to file any UCC Financing Statement it deems necessary to perfect or continue its security interest in the Collateral.

9. SETOFF. Applicant authorizes the Lender, in Lender's sole discretion, and whether or not the Collateral is deemed by Lender to be adequate, to appropriate, liquidate and apply upon any of the Obligations, when due, any and all funds on deposit, securities and securities accounts maintained with Lender, other financial assets now or hereafter on deposit with or the possession of Lender, whether owned jointly or with another party, or to administratively freeze such funds and assets to protect Lender's rights.

- 4 - Form 1893 10. DEFAULT. The following shall constitute a Default under this Application: (a) failure to pay any of the Obligations when due, whether at maturity, by acceleration, or otherwise; (b) the occurrence of an Event of Default under any agreement relating to indebtedness for borrowed money with Lender or any other lender (the effect of which is to cause or permit such indebtedness to become due prior to the its stated maturity); (c) non-performance of any covenant or term contained in this Application or any other document executed in connection with the Obligations; (d) failure of any representation or warranty made by Applicant herein or in any other Lender documentation executed by the Applicant to be true when made; (e) failure of Applicant to furnish satisfactory additional collateral when required to pay or secure Obligations; (f) the death, suspension, dissolution or termination of existence of Applicant; (g) should any petition in bankruptcy by or against Applicant, or any proceedings in bankruptcy, insolvency, or other laws relating to the relief of debtors be commenced for the relief or readjustment of any indebtedness of Applicant, either through reorganization, extension or otherwise; (h) any assignment for the benefit of creditors; (i) the appointment of a receiver of any property of Applicant; (j) the attachment or pledge by any mandatory order of court or other legal process resulting in a claim on or forfeiture of any funds or other property of Applicant which may be in the Lender's possession or control, or that of a third party acting in the Lender's behalf; and (k) any default under any security instrument or other agreement executed by Applicant or third party to secure any indebtedness to Lender.

11. REMEDIES. Upon the occurrence of a Default, the Obligations shall, at Lender's option, become due and payable immediately, and the Lender shall have the right to demand cash collateral in the full amount of the Obligations to secure the reimbursement obligations relating thereto, whereupon such amounts shall become immediately due and payable, in each such case without demand or notice, and Lender shall have all of the rights and remedies available under the UCC, the UCP, the ISP98, and other applicable law. In addition, Applicant grants to Lender the power and authority to sell, assign, and deliver all or any of the Collateral at public or private sale, at Lender's option either for cash or on credit or for future delivery, without assumption of any credit risk and without either demand, advertisement or notice of any kind, all of which are hereby expressly waived. At any sale, Lender may, in its discretion, purchase the whole or any part of the property sold, free from any right of redemption on the part of Applicant, all such rights being hereby expressly waived. Upon the sale or other disposition of any of the Collateral, after deducting all costs or expenses for care, safekeeping, insurance, collection, sale, delivery or otherwise, Lender may apply the residue of the proceeds of the sale or other disposition thereof, to the payment or reduction, either in whole or part, or any of the Obligations, whether or not then due, making proper allowance for interest on the Obligations not then due, and return the surplus, if any, to Applicant or to the persons entitled thereto, all without prejudice to Lender's right against Applicant with respect to the Obligations which may remain unpaid. The expenses and attorney's fees incurred by the Lender in connection with the enforcement of its rights and remedies shall be paid by Applicant and shall be secured by the Collateral.

12. EXCULPATION/INDEMNIFICATION. Neither Lender nor its correspondents shall be responsible for: (a) the use which may be made of the Credit or for any acts or omissions of Beneficiary; (b) the existence, character, quantity, condition, packing, value or delivery of the property, if any, purporting to be represented by documents; (c) the validity, sufficiency or genuineness of documents, or of any endorsements thereon, even if such documents should in fact prove to be in any respect invalid, insufficient, fraudulent or forged; (d) the time, place, manner or order in which shipment of goods is made; (e) partial or incomplete shipment or omission to ship any of the property referred to in the Credit or in the Documents; (f) the existence, adequacy, validity or genuineness of any insurance policy on the goods; (g) the solvency or responsibility of any insurer, or for any other risk connected with insurance; (h) any deviation from instructions, delay, default or fraud by the shipper or any other party in connection with the property; (i) the solvency, responsibility or relationship to the property of any party issuing any documents in connection with the property; a) the delay in arrival, or the failure to arrive, of the property or any of the documents relating thereto; (k) the delay in giving, or failure to give, notice of arrival or any other notice; (I) any breach of contract between the shipper or vendor and the consignee or buyer; (m) the failure of any Instrument to bear any reference or adequate reference to the Credit, the failure of documents to accompany any Instrument at negotiation, or the failure of any person to surrender or to take up the Credit, or to send forward documents apart from drafts as required by the terms of the Credit; (n) any errors, omissions, interruptions or delays in transmission or delivery of any messages by mail, cable, telegraph, email or otherwise; or (o) any act, error, neglect or default, omission, insolvency or failure in business of any of the Lender's correspondents. The occurrence of any one or more of the contingencies referred to in the preceding sentence shall not affect, impair or prevent the vesting of any of the Lender's rights or powers hereunder or Applicant's obligation of reimbursement hereunder. Neither Lender nor its correspondents shall be liable for any action, inaction or omission taken or suffered by Lender, or by its correspondents, under or in connection with the Credit or any related drafts, documents or property, if made in good faith, and in conformity with such foreign or domestic laws, customs or regulations as Lender or its correspondents deem to be applicable. Applicant agrees to indemnify and hold Lender harmless from all claims, suits, losses, damages, costs and liabilities howsoever incurred by Lender, including all reasonable attorneys' fees and related expenses, arising from or in connection with the Credit.

13. AMENDMENT. This Application may be modified only by written agreement signed by Applicant and Lender. The Credit may be modified upon request of Applicant by written agreement between Lender and Beneficiary, and as permitted under the UCP or ISP98 as applicable.

- 5 - Form 1893 14. ASSIGNMENT/TRANSFER. Lender may assign or transfer this Application, and any documents evidencing the Obligations, and may deliver the Collateral to the transferees, who thereupon shall become vested with all the powers and rights thereunder or in the documents transferred, and Lender shall be forever relieved and fully discharged from any liability or responsibility with respect thereto; provided, however, the Lender shall retain all rights and power with respect to any and all documents, rights or property not so transferred. Applicant may not assign or transfer its rights or Obligations without the prior written consent of Lender.

15. NO WAIVER. No delay by Lender in exercising any of its rights and remedies, and no notice or demand, which may be given to or made upon Applicant by Lender with respect to any right or remedy, shall constitute a waiver thereof, or limit or impair Lender's right to take any action or to exercise any power of sale, or other rights or options, without notice or demand, or prejudice Lender's rights as against Applicant in any respect.

16. GOVERNING LAW/CHOICE OF VENUE. Any Credit issued hereunder shall be governed by the terms and provisions of the Uniform Commercial Code in effect in the State of North Carolina, and the terms and conditions of the ISP98 or UCP, as indicated herein above, and any subsequent revisions thereof, the terms of which are hereby incorporated by reference, unless expressly modified herein or excluded herefrom. In the case of conflict between the UCC and ISP98 or UCP, as applicable, the ISP98 or UCP shall control. Any legal action with respect to the credit or the Obligations may be brought in the courts of the State/Commonwealth/District in which the Lender's branch office set forth above is located or in the appropriate U.S. District Court situated therein. Applicant hereby unconditionally submits to the jurisdiction of such courts and waives any objection to the laying of venue based on the grounds of forum non conveniens.

17. USA PATRIOT ACT. Applicant hereby agrees to provide to Lender the Applicant's legal name, address, tax identification number, and date of birth (if Applicant is an individual), and any and all other information or documentation as requested by the Lender in order for Lender to verify the identity of the Applicant in accordance with the USA Patriot Act.

18. WAIVERS. If Applicant requests that: (a) documents be consigned directly to or in the name of Applicant, its broker, or any other third party; (b) negotiable documents be placed in the possession of Applicant, its broker, or other third party; or (c) Lender issue steamship or air releases or similar indemnity agreements or documents, Applicant hereby authorizes Lender to accept and pay any instruments drawn under such Credit, whether or not the documents as ultimately received are in compliance with the terms of such Credit. Applicant waives all defenses based upon any discrepancies in the documents and indemnifies and holds Lender harmless from any liability, claims, damages, loss or expenses incurred in connection with any request made by Applicant under this paragraph. Lender's rights and liens under this Application shall continue unimpaired, and Applicant shall remain obligated in accordance with this Application notwithstanding the release or substitution of any Collateral or of any rights or interests therein, or any delay, extension of time, renewal, compromise or other indulgence granted by Lender relating to the Obligations, or any note, draft, bill of exchange or other Instrument given to Lender in connection with the Obligations. Applicant waives notice of any such delay, extension, release, substitution, renewal, compromise or other indulgence, and consents to be bound thereby as fully and effectively as if Applicant had expressly agreed thereto in advance.

19. FOREIGN ASSETS CONTROL REGULATIONS. Applicant represents and warrants that transactions in the merchandise covered by the Credit are not subject to the Foreign Assets Control Regulations issued by the United States Treasury Department ("FACR") and that any importation covered by this Application conforms in every respect with all existing United States Government regulations and executive orders. Applicant acknowledges that if any Instrument is presented to Lender under a Credit issued in connection with a transaction that is subject to any FACR, the Lender must establish a blocked account and deposit the payment in to the blocked account. The payment by the Lender into a blocked account of any Draft drawn under a Credit issued in connection with a transaction subject to a FACR shall relieve the Lender from its obligations under the Credit. Applicant hereby indemnifies and holds Lender harmless from losses, costs, damages, fines and penalties, including reasonable attorneys' fees, incurred by Lender in connection with any Credit which supports a transaction subject to any FACR.

20. MISCELLANEOUS. This Application is entered into for a business purpose, does not evidence or constitute a "consumer transaction", as defined in the UCC, and none of the proceeds from the Credit shall be used for personal, family or household purposes. This Application shall be binding upon Applicant, its heirs, executors, administrators, personal representatives, successors and assigns, and shall inure to the benefit of, and be enforceable by Lender, its successors, transferees and assigns. If this Application is terminated or revoked by operation of law as to Applicant, Applicant will indemnify and hold Lender harmless from any loss, damage, claim, expense (including without limitation all reasonable attorneys' fees and related expenses incurred by Lender) or liability which may be incurred by Lender in acting hereunder prior to Lender's receipt of written notice of such termination or revocation; provided, however, Lender shall have a reasonable period of time to effect such termination or revocation of the Credit. If this Application is executed by two or more parties, they shall be jointly and severally liable, and the word "undersigned" shall be construed to refer to each of such parties in all the same manner and with the same effect as if each of them had signed separate Applications. This Application shall not be revoked or impaired as to any one or more of the parties by the death of any of the others, or by revocation or release of any obligations of any one or more of the parties.

- 6 - Form 1893 21. WAIVER OF TRIAL BY JURY. UNLESS EXPRESSLY PROHIBITED BY APPLICABLE LAW, APPLICANT HEREBY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY MATTERS OR CLAIMS ARISING OUT OF THIS APPLICATION OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR OUT OF THE CONDUCT OF THE RELATIONSHIP BETWEEN APPLICANT AND LENDER. THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER TO ISSUE THE CREDIT PURSUANT TO THIS APPLICATION. APPLICANT HEREBY CERTIFIES THAT NIETHER ANY REPRESENTATIVE OR AGENT OF LENDER, NOR LENDER'S COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LENDER WOULD NOT SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION IN THE EVENT OF LITIGATION. NIETHER ANY REPRESENTATIVE OR AGENT OF LENDER, NOR ITS COUNSEL, HAS THE AUTHORITY TO WAIVE, CONDITION OR MODIFY THIS PROVISION.

IN WITNESS WHEREOF, the Applicant has signed this Application under seal and it is intended that this Application is and shall constitute and have the effect of a sealed instrument.

WITNESS: APPLICANT: Water Resource Management, Inc.

By: (SEAL) Name: Name: Melissa Harrill, Vice President

TRUIST BANK

By: j (SEAL) Name/Title:ijonathantu kemann, Senior Vice President

7 Form 1893 Truist Bank 7701 Airport Center Drive, Suite 2600 Greensboro, NC 27409

IRREVOCABLE STANDBY LETTER OF CRE IT

Irrevocable Standby Letter of Credit No: Date: 006 June 9, 2020 Beneficiary (Name and Address): Letter of Credit Amount (in US Dollars): North Carolina Utilities Commission $10,000.0 4325 Mail Service Center l f \-' jE_Dy Raleigh, NC 27699

Applicant (Name and Address): Expiration Date: Water Resource Management, Inc. August 4, 2021 151 Mr Bish Blvd. Boone, NC 28607

To Beneficiary:

Truist Bank ("Bank") hereby issues this Irrevocable Standby Letter of Credit No. 06 ("Letter of Credit") on the account of the named Applicant in your favor which is available for payment of your drafts of up to the aggregate amount of Ten Thousand and 00/100ths U.S. Dollars ($10,000.00) drawn on Bank at sight and presented at Bank's office at 7701 Airport Center Dr., Suite 2600 Greensboro, NC 27409, Attention: Domestic Standby Letter of Credit, on or before the Expiration Date as follows:

Each draft drawn hereunder must be marked: "DRAWN UNDER TRUIST BANK IRREVOCABLE STANDBY LETTER OF CREDIT NO. 06" and be accompanied by the original Letter of Credit and your written statement on your letterhead signed by your authorized representative certifying that Applicant has not timely paid amounts properly owed to you and is in default under agreements relating to Echota — Phase 4. Partial drawings are permitted; provided that drawings paid by Bank shall not exceed in the aggregate the stated amount of this Letter of Credit. The amount available under this Letter of Credit shall be automatically reduced by the amount of any partial drawing paid by Bank hereunder.

This Letter of Credit sets forth in full the terms of Bank's undertaking, which shall not in any way be modified, amended or amplified by reference to any documents or contracts referred to herein or in which this Letter of Credit is referenced.

Bank hereby agrees to honor each draft drawn under and in compliance with the terms of this Letter of Credit if duly presented together with the documents specified at Bank's office set forth above on any day other than a Saturday, Sunday or legal bank holiday not later than 4:00 pm Eastern time on or before the Expiration Date hereof. Bank will pay compliant drafts received prior to 12:00 pm Eastern time electronically in accordance with your wire instructions within one business day of receipt thereof, and compliant drafts received after 12:00 pm Eastern time within two business days of receipt thereof.

Form 1412 This Letter of Credit shall terminate at Bank's close of business on the first to occur of (i) the Expiration Date, (ii) the date of payment by Bank of the entire stated amount of this Letter of Credit, or (iii) the date on which Bank receives a dated written statement on your letterhead signed by your authorized representative notifying Bank that you have terminated and cancelled this Letter of Credit. Any drafts or drawings presented after the first to occur of the foregoing will not be honored.

This credit is issued subject to the International Standby Practices 1998 (ISP98), International Chamber of Commerce Publication No. 590, and to the extent not inconsistent with ISP98, the law of the State of North Carolina.

Any correspondence from you to Bank relating to this Letter of Credit shall be sent to Bank at 7701 Airport Center Dr., Suite 2600 Greensboro, NC 27409 Attention: Domestic Standby Letter of Credit.

Truist Bank

Authorizy•d----- Signer: _ ' 7 . V Name/Title: Jonathan L4b

Any correspondence from you to Bank relating to this Letter of Credit shall be sent to Bank at 7701 Airport Center Dr., Suite 2600 Greensboro, NC 27409 Attention: Domestic Standby Letter of Credit.

Truist Bank

Authorized Signer: Name/Title: JonathAn LiliblEemann, Senior Vice President

Form 1412 TRUIST BANK Closing Invoice

6/9/2020 CLIENT Name Water Resource Management, Inc. Account # 9511853300 Street Address 151 Mr Bish Blvd Relationship Manager J. Lubkemann City Boone Note/Line# 00002 State NC Note/Line# 00003 Zip Code 28607 Note/Line# 00006 Phone

1. Loan Amount: Note/Line # Client Name 00002 Water Resource Management, Inc. $ 20,000.00 00003 Water Resource Management, Inc. $ 30,000.00 00006 Water Resource Management, Inc. $ 10,000.00 2. Disbursements from Loan Proceeds: Note/Line # Description of Disbursements

Total Disbursements from Loan Proceeds: $ - 3. Paid at Closing Outside of Loan Proceeds: Note/Line # Description of Fees 00002 Letter of Credit Renewal Fee $ 350.00 00002 Commercial Fulfillment Renewal Fee $ 100.00 00003 Letter of Credit Renewal Fee $ 350.00 00003 Commercial Fulfillment Renewal Fee $ 100.00 00006 Letter of Credit Fee $ 350.00 00006 Commercial Fulfillment Fee $ 225.00 00006 Business Entity Status Report Fee $ 8.00

Total Paid at Closing Outside of Loan Proceeds: $ 1,483.00 4. Legal Fees: Note/Line # Description of Fees

Total Legal Fees: $ Subtotal of Disbursements and Fees $ 1,483.00 5. Paid Outside of Closing (POC): Note/Line # Description

Total Paid Outside of Closing (POC) $ Total Disbursements, Fees and POC $ 1,483.00 Total Available Proceeds #VALUE!

[-Internal-] DRAFT AUTHORIZATION FOR LOAN CLOSING FEES AND LOAN PAYMENTS AND FEES

By completing and signing below, the Deposit Account Owner authorizes Truist Bank ("BB&T now Truist" or "Truist") to automatically debit the Deposit Account identified below in connection with the following described loan:

Primary Obligor Name Obligor Number Obligation Number Water Resource Management, Inc. 9511853300 06

Please select the appropriate option (you may select one or both): If checked here Z Truist is hereby authorized to initiate electronic debits from the Deposit Account designated below in the amount of all loan closing fees and reimbursable expenses incurred by Truist in connection with the loan identified herein, including without limitation any origination fee, commitment fee, documenation or loan processing fee, appraisal fee, evaluation fee, examination fee, inspection fee, filing fee, recording fee and attorneys' fee, as applicable. If checked here Z Truist is hereby authorized to initiate electronic debits from the Deposit Account designated below in the amount of all scheduled loan payments, both principal and accrued interest as the same become due and payable, together with any other amounts that may become due to Truist under the terms of the loan and the related loan documents, including without limitation any inspection fee, examination fee, re-appraisal fee, annual fee, renewal fee, release fee, late fee, documentation or loan processing fee, filing fee, recording fee, attorneys' fee, amounts expended by Truist to which it is entitled reimbursement, and any other fees, as applicable.

The Deposit Account Owner agrees that the electronic debits authorized pursuant to this Draft Authorization will comply with all applicable law (including but not limited to laws administered by the U.S. Office of Foreign Assets Control) and with NACHA rules and Guidelines.

This Draft Authorization will remain effective until the Deposit Account Owner provides written notice of cancellation of this Draft Authorization to Truist at the notice address provided in the loan documents. Truist reserves the right to cancel this Draft Authorization at any time. The signer below represents to Truist that he/she is an authorized signatory on the Deposit Accountand that the Deposit Account is a business account.

Depository Bank Name Deposit Account Number Truist Bank 14 I Checking ❑ Savings

Routing Transit Name of Deposit Account Owner 053101121 Water Resource Management, Inc.

Additional Amount (if any) to be drafted above the regular payment amount

Date Authorized Signatory Title of Authorized Signatory (required if Deposit Account Owner is an entity

9025 Revised: 10/24/2019