WI0500445_GEO THERMAL_20120523

Beverly Eaves Perdue
Governor
·~~-----'---~ --.--.-., 1r. .. . ~-
NCDEN R~ _
North Carolina Department of Environmenfand Natural Resources
Division of Water Quality
Charles Wakild, P. E.
Director
May 23, 2012
Joann Barton
408 Rosehaven Drjve
Raleigh, NC 27609
Subject: Notification of Rule Revisions Affecting
Closed-Loop Geothermal Injection Well Permit Holders
Permit Number: WI0500445
Dear Ms. Barton:
Dee Freeman -
Secretary
Our records indicate that you currently hold a permit for a closed-loop geothermal injection well
system. This letter is to inform you that on May 1, 2012, the North Carolina Administrative
Code Title 15A Section 2C .0200 entitled "Well Construction Standards -Criteria and
Standards Applicable Injection Wells" were revised. These revisions affect all permits issued
for injection wells including geothermal wells.
This letter is also to inform you that your closed-loop geothermal injection well(s) have become
"permitted by rule." Therefore, you are no longer required to renew your current permit
and the permit will be valid indefinitely as long as the wells are active and are operated in
accordance with the revised rules referenced above. Please keep in mind that if you abandon
the wells, a record of abandonment must be submitted to the Division of Water Quality. You
may view the revised rules on our website at http ://portal.ncdenr.org/web/wg/aps.
-----. ·-----
If you have any quesiionsregardiiig your current -permit or the .rule revisions, please feel free to·-
contact our underground injection control staff at [phone].
Sincerely,
Eric G. Smith, P.G.
Hydro geologist
cc: UIC Permit File
AQUIFER PROTECTION SECTION
1636 Mail Service Center, Raleigh, North Carolina 27699-1636
Location: 512 N. Salisbury St., Raleigh, North Carolina 27604
Phone: 919:a0?-6464 I FAX: [phone]
Internet: www.ncwaterguality.org
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1. WELL CONTRACTOR:
I IN �t
Well Contractor (Individual) Name-,
AetlaContractor eIPTIPa2Y,Name
7045459449
NON WELL CONSTRUCTION RECORD
North Carolina Oepartinerlt of Environment and Natural Resources- Division °MWater quality
WELL CONTRACTOR CERTIFJCATIOI 1.. ._Jc'a Y D? 6vAgFierProtectl0n J@CiiQrl
d_ TOP OF CASING t5 0 FT. Above Land Surface'
•Top of casing terminated atfor below land surface may require
a variance in accordance with 15A NCAC 2C .0118.
p.2
City or Town Slate 2ip Code
( Ir\A) `7� c cc4
Area cod Phone number
2. WELL. INFORMATION
WELL CONSTRUCTION PERMIT#_
OTHER ASSOCIATED PERIvIIT#(Ir *PlIcable) � !r _�
SITE WELL 10 At(if epprc,abta) �� 1 }`. ��� �'7 L4 -J
3. WELL USE (Check One Boxy Monitoring 0 MunIcipettPublIc ❑
industrlalJComraercialp7Agdcuilural 0 Recovery° Injection p
Irrigation° Other El (fist use)
DATE DRILLED 11- •2
4. WELL LOCATION:
(�''(� �/) { y` `ug _
1y i� )\(`� � • V' Y�7' a`Ir� 11.E C - 1�� '
SStrEet Name. NLJr,- e►s, Communlry, SSubdwislo•1, Lot No Parcel, Zap Code}
CCTV: �t Li S C•''l COUNTY �}� 1` c,
TOPOGRAPHIC 1 LAN SEfT1NG: (check appn pnale box)
❑Slope ❑Valley pilot aRidge °Other
LATITUDE 36 • ^ DMS OR 3X.3000000aac DO
LWNGITUDE 75 • . • " DMS DR 7k. oorwx)CcCC OD
Latitudefongitude source: FOPS °Topographic map
(location of well roust to s$iO WP on a USGS tapo map andetfached to
this Tom if not using GPS)
5. FACILITY (Name of the business where the well is focated.)
r
�1l �� � t'c j"-I t•L�7 � C� G
aLne Facility 1118r Of applicable)
AC.,-/7
Sk�at Address,
Ck�
City or Town t.
State .Zfp Code
Contact Name
Malting Address
City or Town • Slate Zip Code
Lglorp qr-''xcD
Area code Phone number
G. WELL DETAILS: 15 (d O 1� VFW OR' Gl-IE 1]�
a. TOTAL DEPT-I: 3 sC 7...�� 4GG- ►![+1ES
b. DOES WELL, REPLACE EXISTING WELL? YES ❑ NO
c. WATER LEVEL Below Top of Casing: FT.
(Use " - If Above Top of Casing)
e. YIELD (gpm): '+
RECEil'
MAI; d
METHOD OF TEST
f. DISINFECTION: Type Amount
g. WATER ZONES (depth):
Tcp Bottom Top BoItorn
Tap Bottom _ Top Bottom
r Tap Bottom Top Bottom_ _
7. CASING: Depth
Top (3 eottam "
Top Bottom_
Top Bottom_
Diameter
FL 0
FL • -
Ft.
TbicRcness/
Weight Ma ter tat
0
8. GROUT: Depth Material Method Top ' Ft. 72',j 4HC] C;ROCIT ;lyeti
.. . .,• Ft. Y_{t
Top Buttorn Ft.
9. SCREEN: Depth Diameter Slot Size Material
Top r- Bottom FL '~iri. - - in. _
Top r Bottom Ft: in_ in.
Top rBottum Ft.
10. SANDIGRAVEL PACK:
Top Baden) Ft.
Top - `"Bottom Ft,
Top Botlnm Ft.
Size
11. DRILLING LOG
Top Bottom
0_1
1
1
12, REUARi(S:
Materiel
Formation Description
Sf L.E
b 1 i c s'la
I DO HEREBY CERTIFY THAT Tile WELL WAS OONTIRLrCTEO IH ACCOR°Aram WITH
I .A WAG 2C. WELL cONSTRUCIION STANDARDS, ANC THAT A COPY of THIS
RECORD HAS 8F,l:su PROV1DEA TO THE WELL,...
P /- 7 / 2
TURE OF CERTIFIED C ONTRAC OR DATE
U.c) h ry fi . id) 4,3..
PRINTED NAME OF PERSON CONSTRUCTING THE WELL
Submit within 3D days of completion to: Division of Water Quality - Information Processing,
1917 Mail Service Center, Raleigh, NC 27699-161, Phone : t91918a7-6300 DEAR p$IS
RECEIVED 03-12-' 1.2 19; 36 PROM- 7045459449 TO- M
Form GW-10
Rev" 2109
PO02/003

Permit Number WI0500445
Program Category
Ground Water
Permit Type
Injection Mixed Fluid GSHP Well System (5QM)
Primary Reviewer
michael.rogers
Coastal SW Rule
Permitted Flow
Facilit
Facility Name
Kyma Technologies
Location Address
8829 Midway W Rd
Raleigh
Owner
Owner Name
Joann
Dates/Events
NC 27619
C Barton
Scheduled
Orig Issue
11/14/11
App Received Draft Initiated Issuance
10/19/11
Central Files : APS_ SWP_
11/15/11
Permit Tracking Slip
Status
Active
Version
1.00
Project Type
New Project
Permit Classification
Individual
Permit Contact Affiliation
Major/Minor
Minor
Region
Raleigh
County
Wake
Facility Contact Affiliation
Owner Type
Individual
Owner Affiliation
Joann C. Barton
408 Rosehaven Dr
Raleigh NC 27609
Public Notice Issue
11/14/11
Effective
11/14/11
Expiration
10/31/16
Regulated Activities Re ques ted/Received Events -~----------------------
Heat Pump Injection RO staff report requested
RO staff report received
Outfall NULL
Waterbody Name Stream Index Number Current Class
11/01/11
11/10/11
Subbasin
Permit Number WI0500445
Program Category
Ground Water
Permit Type
Injection Mixed Fluid GSHP Well System (SQM)
Primary Reviewer
michael.rogers
Coastal SW Rule
Permitted Flow
Facility
Facility Name
Kyma Technologies
Location Address
8829 Midway W Rd
Raleigh
Owner
Owner Name
Joann
Dates/Events
NC 27619
C Barton
Orig Issue App Received Draft Initiated
10/19/11
Regulated Activities
Heat Pump Injection
Outfall NULL
Scheduled
Issuance
Central Files: APS_ SWP_
11/09/11
Permit Tracking Slip
Status
In review
Project Type
New Project
Version Permit Classlflcation
Individual
Permit Contact Affiliation
Major/Minor
Minor
Region
Raleigh
County
Wake
Facility Contact Affiliation
Owner Type
Individual
Owner Affiliation
Joann C. Barton
408 Rosehaven Dr
Raleigh NC
Public Notice Issue Effective
Re quested fR eceived Even ts
RO staff report received
RO staff report requested
27609
Expiration
11/01/11
Waterbody Name Stream Index Number Current Class Subbasin
RA
NCDENR
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue
Governor
Coleen H. Sullins
Director
November 14, 2011
JoAnn Barton
408 Rosehaven Dr.
Raleigh, NC 27619
Ref: Issuance of Injection Well Permits WI0500445
Issued to JoAnn Barton
Raleigh, Wake County, North Carolina
Dear Ms. Barton:
Dee Freeman
Secretary
In accordance with the application received on October 19, 2011, I am forwarding permit number WI0500445 for
the construction and operation of a vertical closed-loop geothermal mixed-fluid heat pump injection well system to
be located at the above referenced address. This permit shall be effective from the date of issuance until October
31, 2016, and shall be subject to the conditions and limitations stated therein, including the requirement to install
well identification tags as specified in Part 11.3 and to submit well construction records as specified in Part
VII.2. Be sure to read the entire permit to ensure that you are aware of all compliance requirements of the permit.
You will need to notify this office at least 48 hours prior to beginning construction and operation of the injection
well system. In order to continue uninterrupted legal use of the injection facility for the stated purpose, you must
submit an application to renew. the permit 120 days prior to its expiration date. This permit is not transferable to
any person without prior notice to and approval by the Director of the Division of Water Quality.
Please contact me at [phone] or michael.ro gers(a).ncdenr.Qov if you have any questions about your permit.
cc: Jay Zimmerman, Raleigh Regional Office
WI0500445 Permit File
Wake County Environmental Health Department
Best Regams,
~JZ,--
Michael Rogers, P.G. (NC & FL)
Heather Splawn, Kyma Technologies, 8829 Midway West Rd., Raleigh, NC 27619
Paul Penland, Trimech, Inc., 2101 N. Frazier Rd., Mebane, NC 27302
AQUIFER PROTECTION SECTION
1636 Mail Service Genier, Raleigh, North Carolina 27699-1636
Location: 2728 Capital Boulevard, Raleigh, North Carolina 27604
Phone: [phone] I FAX 1: 919-715-0588; FAX 2: 919-715-6048 \ Cusiomer Service 1-877-623-6748
internet: www.ncwate rc ualitv .oro
An Equc:: Opportunity\ Affirmative .i\cti □n Err>player
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NORTH CAROLINA
ENVIRONMENTAL MANAGEMENT COMMISSION
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
RALEIGH, NORTH CAROLINA
PERMIT FOR THE CONSTRUCTION AND OPERATION OF A WELL FOR INJECTION
In accordance with the provisions of Article 7, Chapter 87; Article 21, Chapter 143; and other applicable
Laws, Rules, and Regulations
PERMISSION IS HEREBY GRANTED TO
JoAnn C. Barton
FOR THE CONSTRUCTION AND OPERATION OF 3 TYPE 5QM INJECTION WELL(S), defined in Title
15A North Carolina Administrative Code 2C .0209(e)(3)(F), for the purpose of operating a vertical closed loop
geothermal mixed fluid heat pump system. This system is located at Kyma Technologies, 8829 Midway West
Rd., Raleigh, Wake County, NC 27619, and will be constructed and operated in accordance with the application
received October 19, 2011, and in conformity with the specifications and supporting data, all of which are filed
with the Department of Environment and Natural Resources and are considered a part of this permit.
This permit is for Construction and Operation of an injection well and shall be in compliance with Title 15A of
the North Carolina Administrative Code 2C .0100 and .0200 plus any 'other applicable Laws, Rules, and
Regulations pertaining to well construction and use.
This permit shall be effective, unless revoked, from the date of its issuance until October 31, 2016, and shall be
subject to the specified conditions and limitations set forth in Parts I through IX hereof.
Permit issued this the 14th day of November, 2011.
CYCos, LA -AS,
Coleen H. Sullins, Director
Division of Water Quality
By Authority of the Environmental Management Commission.
Permit #W10500445
wGSOM
ver. 03/2010.
Page 1 of 5

PART I -WELL CONSTRUCTION GENERAL CONDITIONS
1. The Permittee must comply with all conditions of this permit and with the standards and criteria specified
in Criteria and Standards Applicable to Injection Wells (15A NCAC 2C .0200). Any noncompliance with
conditions of this permit constitutes a violation of the North Carolina Well Construction Act and is
grounds for enforcement action as provided for in N.C.G.S. 87-94.
2. This permit shall become voidable unless the facility is constructed in accordance with the conditions of
this permit, the approved plans and specifications, and other supporting data.
3. Each injection well shall not hydraulically connect separate aquifers.
4. Each injection well shall not be located in an area generally subject to flooding. Areas that are generally
subject to flooding include those with concave slope, alluvial or colluvial soils, gullies, depressions, and
drainage ways.
5. Each injection well shall be afforded reasonable protection against damage during construction and use.
PART II -WELL CONSTRUCTION SPECIAL CONDITIONS
1. At least forty-eight ( 48) hours prior to constructing system, the Permittee shall notify the Aquifer
Protection Section's Underground Injection Control (UIC) Program Central Office staff, telephone
number 919-715-6166 and the Raleigh Regional Office Aquifer Protection Section Staff, telephone
number 919-791-4200.
2. The location of each of the system manifolds shall be recorded by triangulation from three permanent
features on the site (e.g., building foundation corners) and shown on an updated Site Map. The Permittee
shall retain a copy of this record on site.
3. One well identification tag per grouping or 'cluster' of wells shall be permanently affixed to the heating
and cooling unit or other nearby permanently fixed location in accordance with 1 SA NCAC 2C .0213(g).
PART III-OPERATION AND USE GENERAL CONDITIONS
1. This permit is effective only with respect to the nature, volume of materials and rate of injection, as
described in the application and other supporting data.
2. This permit is not transferable without prior notice to, and approval by, the Director of the Division of
Water Quality (Director). In the event there is a desire for the facility to change ownership, or there is a
name change of the Permittee, a formal permit amendment request must be submitted to the Director,
including any supporting materials as may be appropriate, at least 30 days prior to the date of the change.
3. The issuance of this permit shall not relieve the Permittee of the responsibility of complying with any and
all statutes, rules, regulations, or ordinances, which may be imposed by other local, state, and federal
agencies, which have jurisdiction. Furthermore, the issuance of this permit does not imply that all
regulatory requirements have been met.
Permit #WI0500445 UIC/SQM
ver. 03/2010
Page 2 of 5
PARTIV-l>ERFORMANCE STANDARDS
1. The injection facility shall be effectively maintained and operated at all times so that there is no
contamination of groundwater that will render it unsatisfactory for normal use. In the event that the
facility fails to perform satisfactorily, including the creation of nuisance conditions or failure of the
injection zone to adequately assimilate the injected fluid, the Permittee shall take immediate corrective
actions including those actions that may be required by the Division of Water Quality such as the repair,
modification, or abandonment of the injection facility.
2. The Permittee shall be required to comply with the terms and conditions of this permit even if compliance
requires a reduction or elimination of the permitted activity.
3. The issuance of this permit shall not relieve the Permittee of the responsibility for damages to surface or
ground water resulting from the operation of this facility.
PART V -OPERATION AND MAINTENANCE REQUIREMENTS
1. The injection facility shall be properly maintained and operated at all times.
2. The Permittee must notify the Division and receive prior written approval from the Director of any
planned physical alterations or additions in the permitted facility or activity not specifically authorized by
the permit.
3. At least forty-eight ( 48) hours prior to the initiation of the operation of the facility for injection, the
Permittee must notify by telephone the Aquifer Protection Section's Underground Injection Control (UIC)
Program Central Office staff, telephone number 919-715-6166 .. Notification is required so that Division
staff can inspect or otherwise review the injection facility and determine if it is in compliance with permit
conditions.
PART VI -INSPECTIONS
1. Any duly authorized officer, employee, or representative of the Division of Water Quality may, upon
presentation of credentials, enter and inspect any property, premises, or place on or related to the injection
facility at any reasonable time for the purpose of determining compliance with this permit, may inspect or
copy any records that must be maintained under the terms and conditions of this permit, and may obtain
samples of groundwater, surface water, or injection fluids.
2. Division representatives shall have reasonable access for purposes of inspection, observation, and
sampling associated with injection and any related facilities as provided for in N.C.G.S. 87-90.
3. Provisions shall be made for collecting any necessary and appropriate samples associated with the
injection facility activities.
Permit #WI0500445 UIC/SQM
ver. 03/2010
~age 3 of 5
PART VII -MONITORING AND REPORTING REQUIREMENTS
1. All required documentation shall be submitted to:
Aquifer Protection Section -UIC Program
DENR-Division of Water Quality
1636 Mail Service Center and
Raleigh, NC 27699-1636
Ph# 919-715-3221
Aquifer Protection Section
Raleigh Regional Office
1628 Mail Service Center
Raleigh, NC 27699
919-791-4200
2. A completed Well Construction Record (Form GW-1) for each injection well must be submitted to the
Aquifer Protection Section Central Office and the Raleigh Regional Office within 30 days of completion
of well construction. Copies of the GW-1 form(s) shall also be given to the Permittee and retained on site
to be made available for inspection.
3. A copy of the site map updated with manifold locations required in Part 11.2 of this permit shall be
submitted to the Aquifer Protection Section Central Office and the Raleigh Regional Office within 30 days
of completion of well construction.
4. Any monitoring (including groundwater, surface water, or soil sampling) deemed necessary by the
Division of Water Quality to insure surface and ground water protection will be established and an
acceptable sampling reporting schedule shall be followed.
5. The Permittee shall report by telephone, within 48 hours of the occurrence or first knowledge of the
occurrence, to the Raleigh Regional Office, telephone number 919-791-4200, any of the following:
(A) Any occurrence at the injection facility that results in any unusual operating circumstances;
(B) Any failure due to known or unknown reasons that renders the facility incapable· of proper
injection operations, such as mechanical or electrical failures;
(C) Any loss ofrefrigerant in the system, regardless of the origin of the loss;
(D) Any recharging of the refrigerant system.
6. Where the Permittee becomes aware of an omission of any relevant facts in a permit application, or of any
incorrect information submitted in said application or in any report to the Director, the relevant and
correct facts or information shall be promptly submitted to the Director by the Permittee.
7. In the event that the permitted facility fails to perform satisfactorily, the Permittee shall take such
immediate action as may be required by the Director.
PART VIII -PERMIT RENEW AL
In order to continue uninterrupted legal use of the injection facility for the stated purpose, the Permittee shall
submit an application to renew the permit 120 days prior to its expiration date.
Permit #WI0S00.!!.45 UIC/SQM
ver. 03/2010
Page 4 of 5
PAR1' IX-CHANGE OF WELL STATUS
1. The Permittee shall provide written notification within 15 days of any change of status of an injection
well. Such a change would include the discontinued use of a well for injection. If a well is taken
completely out of service temporarily, the Permittee must install a sanitary seal. If a well is not to be used
for any purpose, then that well must be permanently abandoned according to 15A NCAC 2C .0213(h)(l).
Notification shall be submitted to the addresses given in Part VII.I of this permit.
2. When operations have ceased at the facility and a well will no longer be used for any purpose, the
Permittee shall abandon that injection well in accordance with the procedures specified in 1 SA NCAC 2C
.0214, including but not limited to, the following:
(A) All casing and materials may be removed prior to initiation of abandonment procedures if the
Director finds such removal will not be responsible for, or contribute to, the contamination of an
underground source of drinking water.
(B) The entire depth of each well shall be sounded before it is sealed to insure freedom from
obstructions that may interfere with sealing operations.
(C) Each well shall be thoroughly disinfected, prior to sealing, if the Director determines that failure
to do so could lead to the contamination of an underground source of drinking water.
(D) Each well shall be completely filled with cement grout, which shall be introduced into the well
through a pipe that extends to the bottom of the well and is raised as the well is filled.
(E) In the case of gravel-packed wells in which the casing and screens have not been removed, the
casing shall be perforated opposite the gravel pack, at intervals not exceeding 10 feet, and grout
injected through the perforations.
(F) In those cases when, as a result of the injection operations, a subsurface cavity has been created,
each well shall be abandoned in such a manner that will prevent the movement of fluids into or
between underground sources of drinking water and in accordance with the terms ao.d conditions
of the permit.
(G) The Permittee shall submit a copy of the Well Abandonment Record (Form GW-30) as specified
in ISA NCAC 2C .0213(h)(l) within 30 days of completion of abandonment. Copies shall be
submitted to the addresses given in Part VII.1 of this permit.
Permit #WI0500445 UIC/SQM
ver . 03/2010
Page 5 of 5
MA
NCDENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue
Governor
MEMORANDUM
Division of Water Quality
Coleen H. Sullins
Director
November 9, 2011
Dee Freeman
Secretary
To:
Through:
Michael Rogers, The Central Office, APS
Jay Zimmerman
From: Lin McCartney
Subject:
Well
Staff Report-WI0500445, Kyma Technologies, SQM Geothermal
Wake County
Aquifer Protection Section
1628 Mail Service Center, Ral eigh , N orth Carolina 27699-1628
Location : 3800 Banett Dr., Raleigh, North Carolina 27609
Phone: [phone] \ FAX: [phone] \ Cu stomer Service: 1.-877-623-6748
Internet: www.ncwaterguality.org
An Equal Opportunity \ Affi rmative Action Empl oyer
RECEIVED / DENR / D'('JQ
Aquifer Protection Section
NOV 10 2011
Nirth Carolina
Naturally
AQUIFER PROTECTION REGIONAL STAFF REPORT
Date: November 9, 2011
To: Aquifer Protection Central Office
Central Office Reviewer: Michael Rqgers
Regional Login No:
1. GENERAL INFORMATION
1. This application is (check ali that apply): ® New ❑ Renewal
❑ Minor Modification ❑ Major Modification
County: Wake
Permittee: KA ma Technologies
Project Name: 5QM Infection Well
Application No.: WI0500445
O Surface Irrigation ❑ Reuse ❑ Recycle ❑ High Rate Infiltration ❑ Evaporationllnfiltration Lagoon
❑ Land Application of Residuals
❑ Distribution of Residuals
❑ Attachment B included
0 Surface Disposal
❑ 503 regulated ❑ 503 exempt
❑ Closed -loop Groundwater Remediation ® Other Injection Wells (including in situ remediation)
Was a site visit conducted in order to prepare this report? ® Yes or ❑ No.
a.
b.
c.
d.
Date of site visit: 11-08-2011
Person contacted and contact information: Paul Penland. 919-304-4977, 919-971-6024
Site visit conducted by: Lin McCartney
Inspection Report Attached: ® Yes or ❑ No.
2. Is the following information entered into the BIMS record for this application correct?
® Yes or ❑ No. If no, please complete the following or indicate that it is correct on the current application.
For Treatment Facilities:
a.
b.
c.
d,
Location:
Driving Directions:
USGS Quadrangle Map name and number:
Latitude: Longitude:
e. Regulated Activities / Type of Wastes (e.g., subdivision, food processing, municipal wastewater):
For Disposal and Injection Sites:
Of multiple sites either indicate which sites the information applies to. copy andjaste a new section into the
document for each site, or attach additional pages for each site}
a. Location(s): 8829 Midway West Road. Raleigh, NC 27619
b. Driving Directions: Take US-70 W for 7 miles, take the Lumley Rd/ Westgate Rd exit. EXIT 293. toward
I-5401I-40, turn slight right onto Westgate Rd. turn left onto Midway. West..
c. USGS Quadrangle Map name and number: N/A
d. Latitude: 35-54-23 Longitude: 78-45-28
II. NEW AND MAJOR MODIFICATION APPLICATIONS (this section not needed for renewals or minor
modifications, skip to next section)
Descrption Of WastelS) And Facilities
1. Please attach completed rating sheet, Facility Classification:
R 1 DEW 1
POW p QtrilAieti► Section
FORM: StaffReport-Kyma Technologies-SQM 1

AQUIFER PROTECTION REGIONAL STAFF REPORT
IV. INJECTION WELL PERMIT APPLICATIONS (Complete these two sections for all systems that use injection
wells, including closed-loop groundwater remediation effluent injection wells, in situ remediation injection wells, and heat
pump injection wells.)
Descri ption Of Well(S ) And Facilities -New, Renewal , And Modification
1. Type of injection system:
D Heating/cooling water return flow (SA 7)
IZ! Closed-loop heat pump system (5QM/5QW)
D In situ remediation (51)
D Closed-loop groundwater remediation effluent injection (5L/"Non-Discharge")
D Other (Specify: )
2. Does system use same well for water source and injection? D Yes IZ! No
3. Are there any potential pollution sources that may affect injection? □'Yes IZ! No
What is/are the pollution source(s)?
4. What is the minimum distance of proposed injection wells from the property boundary?
5. Quality of drainage at site: IZ! Good D Adequate D Poor
6. Flooding potential of site: IZ! Low D Moderate D High
7. For groundwater remediation systems, is the proposed and/or existing groundwater monitoring program
(number of wells, frequency of monitoring, monitoring parameters, etc.) adequate? D Yes D No. Attach
map of existing monitoring well network if applicable. If No, explain and recommend any changes to the
groundwater monitoring program: __
8. Does the map presented represent the actual site (property lines, wells, surface drainage)? IZ! Yes or D No. If
no or no map, please attach a sketch of the site. Show property boundaries, buildings, wells, potential pollution
sources, roads, approximate scale, and north arrow.
Injection Well Permit Renewal And Modification Onl y:
1. For heat pump systems, are there any abnormalities in heat pump or injection well operation (e.g. turbid water,
failure to assimilate injected fluid, poor heating/cooling)?
D Yes IZ! No. If yes. ex plain:
2. For closed-loop heat pump systems, has system lost pressure or required make-up fluid since permit issuance
or last inspection? D Yes IZ! No. If yes . ex plain:
3. For renewal or modification of groundwater remediation permits (of any typ e ), will
continued/additional/modified in jections have an adverse im pact on migration of the plume or management of
the contamination incident? D Yes D No. If yes . ex plain:
4. Drilling contractor: Name: John Mike Mullis
FORM: Staff.Report-Kyma Technologies-5QM 4
AQUIFER PROTECTION REGIONAL STAFF REPORT
Address:
9200 S W face Hill Road , Charlotte , NC 28227
Certification number: 203 8
5. Complete and attach Well Construction Data Sheet.
V. EVALUATION AND RECOMMENDATIONS
l. Provide any additional narrative regarding your review of the application.:
2. Attach Well Construction Data Sheet -if needed information is available
3. Do you foresee any problems with issuance/renewal of this permit? D Yes C8J No. If yes, please explain
briefly. __ .
4. List any items that you would like APS Central Office to obtain through an additional information request.
Make sure that you provide a reason for each item:
Item Reason
5. List specific Permit conditions that you recommend to be removed from the permit when issued. Make sure
that you provide a reason for each condition:
Condition Reason
6. List specific special conditions or compli;mce schedules that you recommend to be included in the permit when
issued. Make sure that you provide a reason for each special condition:
Condition Reason
FORM: Staff.Report-Kyrna Technologies-SQM 5
AQUIFER PROTECTION REGIONAL STAFF REPORT
Signature of APS regional supervisor:
Date: ff!J91 1 24'1
ADDITIONAL REGIONAL STAFF REVIEW ITEMS
A pre -permitting inspection was conducted on November 8, 2011.
18 borings were proposed to construct with depth of 335 feet. All wells will be constructed under
the ground behind the building. Borings will be vertically drilled.
7. Recommendation: ❑ Hold, pending receipt and review of additional information by regional office; 111 Hold,
pending review of draft permit by regional office; ❑ Issue upon receipt of needed additional information;
Issue; ❑ Deny. If deny, please state reasons:
8. Signature of report preparers): r ? * l 1- .
(7-
� 1
A review of the construction data indicates that the proposal to construct the well meets the
injection well construction criteria in accordance with N.C. State Regulations (Title 15A NCAC
2C), Well Construction Standards.
The following items were checked:
All the wells will be 3 feet below the ground: well heads and horizontal connecting lines will be 3
feet below the ground.
Type of tubing: Polyethylene
Grout type: bentonite; grout depth: from 3 feet to 335 feet
Chemical additives to be used in closed -loop system: Ethanol
We recommend that the Central Office proceed to issue the applicant a permit for geothermal well
construction so that the contractor could start construction.
44,40 b< 4,/ 4„4,, pie,-
44.44-,'047 04-1 -34.t.d-pl4t)“,-4- er,
Jdeaat
FORM: Staff. Report-Kyma Technologies-5QM 6

Permit: WI0500445
SOC:
County: Wake
Region: Raleigh
Effective:
Effective:
Contact Person: Heather A Splawn
Directions to Facility:
System Classifications:
Primary ORC:
Secondary ORC(s):
On-Site Representative(s):
Related Permits:
Inspection Date: 11/08/2011
Primary Inspector: Lin McCartney
Secondary lnspector(s):
Reason for Inspection: Routine
Compliance Inspection Report
Expiration:
Expiration:
Title:
Owner: Kyma Technologies
Facility: Kyma Technologies
8829 Midway W Rd
Raleigh NC 27619
Phone: [phone]
Certification: Phone:
Entry Time: 12:30 PM Exit Time: 01 :30 PM
Phone: [phone]
Ext.4243
Inspection Type: Compliance Evaluation
Permit Inspection Type: Injection Mixed Fluid GSHP Well System (SQM)
Facility Status: ■ Compliant O Not Compliant
Question Areas:
■Other
(See attachment summary)
Page: 1
Permit: WI0500445
Inspection Date: 11/08/2011
Inspection Summary:
Owner -Facility: Kyma Technologies
Inspection Type: Compliance Evaluation
A pre-permitting inspection was conducted on. November 8, 2011 .
Reason for Visit: Routine
18 borings were proposed to construct with depth of 335 feet. All wells will be constructed under the ground behind the
building. Borings will be vertically drilled.
A review of the construction data indicates that the proposal to construct the well meets the injection well construction
criteria in accordance with N.C. State Regulations (Title 15A NCAC 2C), Well Construction Standards.
The following items were checked:
All the wells will be 3 feet below the ground: well heads and horizontal connecting lines will be 3 feet below the ground.
Type of tubing: Polyethylene
Grout type: Bentonite; Grout depth 3 feet to 335 feet
Chemical additives to be used in closed-loop system: Ethanol
We recommend that the central Office proceed to issue the applicant a permit for geothermal well construction so that the
contractor could start construction.
Other
Comment:
Yes No NA NE
Page: 2
Rogers, Michael
From: Rogers , Michael
Sent:
To:
Wednesday, November 09, 2011 4:43 PM
Mccartney, Lin; Zimmerman , Jay
Cc: Watts , Debra
Subject: RE: WI0500445, Kyma Technologies
Lin-
Please send staff report to both Debra and I when completed for the above site. I'll be off tomorrow as my wife is having
a procedure at the hospital, and Friday is a holiday. The permit will be in Debra's box, and she can get out if needed.
Thanks
Michael Rogers, P.G. (NC & FL)
Environmental Specialist
NC Div of Water Quality-Aquifer Protection Section (APS)
1636 Mail Service Center
Raleigh, NC 27699-1636
Direct Line [phone]; Fax [phone] (put to my attn on cover letter)
http ://portal.ncdenr.org/web/wq/aps/gwpro/permit-applications#geothermApps
E-mail correspondence to and from this address may be subject to the North Carolina Public Records Law and may be disclosed to third parties
From: Mccartney, Lin
Sent: Friday, November 04, 2011 3: 10 PM
To: Rogers, Michael
Subject: WI0500445, Kyma Technologies
Michael,
I have scheduled a site inspection for the subject permit on November 8, 2011, at 12:00 pm. If you would like to join
me, please let me know.
Thanks,
Lin
1
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AOUIFER PROTECTION SECTION
APPLICATION REVIEW REOUEST FORM
Date: November 1. 2011
To: ❑ Landon Davidson, ARO-APS
❑ Art Barnhardt, FRO-APS
❑ Andrew Pitner, MRO-APS
® Jay Zimmerman, RRO-APS
From: Michael Rot?ers Groundwater Protection Unit
Telephone: 1919i 715-6166
E-Mail: Michael.Ro«ers,ancmaiLnet
❑ David May, WaRO-APS
❑ Charlie Stehman, WiRO-APS
❑ Sherri Knight, W-SRO-APS
Fax: [phone]
A. Permit Number: WI 0500445
B. Owner: JoAnn Barton - Kvma Technologies
C. Facility/Operation:
❑ Proposed ® Existing
❑ Facility ❑ Operation
D. Application:
1. Permit Type: ❑ Animal ❑ SFR-Surface Irrigation❑ Reuse ❑ H-R Infiltration
❑ Recycle 111 I/E Lagoon ❑ GW Remediation (ND)
• UIC -5QM -Groundwater Geothermal Well
For Residuals: ❑ Land App.
❑ 503
❑ D&M ❑ Surface Disposal
❑ 503 Exempt ❑ Animal
2. Project Type: ® New ❑ Major Mod. ❑ Minor Mod. ❑ Renewal ❑ Renewal w/ Mod.
E. Comments/Other Information: El
NOTE: This appears to be commercial: property, .therefore, we need's .staff report. Let me know
when you make an appointment for ,site inspection as I may want to join you at the site (if my schedule
will allowl. Thanks
Attached., you will find all information submitted in support of the above -referenced application for your
review, comment, and/or action. Within, please take the following actions:
® Return a Completed APSARR Form and attach laboratory analytical results, if applicable.
❑ Attach Well Construction Data Sheet.
❑ Attach Attachment B for Certification by the LAPCU.
❑ Issue an Attachment B Certification from the RO.*
* Remember that you will be responsible for coordinating site visits and reviews, as well as additional
information requests with other RO-APS representatives in order to prepare a complete Attachment B for
certification. Refer to the RPP SOP for additional detail.
When you receive this request form, please write your name and dates in the spaces below, make a copy
of this sheet, and return it to the appropriate Central Office -Aquifer Protection Section contact person
listed above,
RO-APS Reviewer:
Date:
FORM: APSARR 07/06 Pagei of 1

RA
NC DEM R
North Carolina Department of Environment and Natural Resources
Division of Water Quality
Beverly Eaves Perdue
Governor
Heather A. Splawn
Kyma Technogies
8829 Midway West Road
Raleigh, NC 27619
Dear Ms. Splawn:
Coleen H. Sullins
Director
November 1, 2011
Dee Freeman
Secretary
Subject: Acknowledgement of
Application No. WI0500445
Kyma Technologies
Injection Mixed Fluid GSHP
Well (SQM) System
Wake County
The Aquifer Protection Section acknowledges receipt of your permit application and supporting
• documentation received on October 21, 2011. Your application package has been assigned the number
listeci above, and the primary reviewer is Michael Rogers.
Central and Raleigh Regional Office staff will perform a detailed review of the provided
application, and may contact you with a request for additional information. To· ensure maximum
efficiency in processing permit applications, the Aquifer Protection Section requests your assistance in
providing a timely and complete response to any additional information requests.
Please note that processing standard review permit applications may take as long as 60 to 90 days
after receipt of a complete application. If you have any questions, please contact
Michael Rogers at [phone] or [e-mail].
Sincerely,
O~A.~
for Debra J. Watts
Groundwater Protection Unit Supervisor
cc: Raleigh Regional Office, Aquifer Protection Section
Chad Mullis -DL Mullis
Paul Penland -Tri Mech, Inc.
Permit File WI0500445
AQUIFER PROTECTION SECTION
1636 Mail Sel\lice Center, Raleigh, North Carolina 27699-1636
Locaiion: 2728 Capital Boulevard , Raleigh, North Carolina 27604
Phone: [phone] \ FAX 1: 9.19-715-0588; F.A.X 2: 919-7 15-6048 \ Customer Service: 1-877-523-6748
Internet: www.ncwatergualitv.org
An Equal Opportuntty \ Affirma!ive Aciion Employer
NOnehc· 1· _ .ort .. · aroma
1"A-latural!y
NORTH CARO1..1NA .DEPARTMENT OF ENVIRONMENT AND NATURAL R.ESOIJRCES
APPLICATION FOR A PERMIT TO CONSTRUCT OR OPERATE INJECTION WELLS
In Accordance With the Provisions of 1 to NCAC 0ZC _0200
CLOSED -LOOP MIXED -FLUID GEOTHERMAL INJECTION WELLS
These was circulate fluids other than potable water as part of a geothermal heating and coaling system
(check one) New Application
Renewal
Modification
• For renewals complete Parts A-C' and the signature page.
Pant or Tie Information and .i-fai7 to the .4dthy.rs on the Last Page. Megihlz Application MU Be Returned As Ineomplew.
DATE: ) e7 , 20_(!
PERMIT NO.\ 445cave blank if New Application)
A. STATUS OF APPL/CANT (choose one)
Non -Government: Individual Residence _ tr'i cssfOrgartization
Government: State Municipal►! County Federal .„_
& PERMIT APPLICANT — For individ6a1 residences, list each owner an praperty deed. For all others,
state »a to of entity tire ofpetw;ctn delegated authority to sign on behalf of the business or agency:
�nG e ivwlDbles
Mailing ddrsss: b of .'rkJC+ L (1.1
O
City: E� ,1 State: Zip Code: 17K-, County:. 10-1'ee...
Day 'iele No.: - 9/ - 789"' ' jU Cell Nv.:
EMAIL Address:=Lnicdai.cR SdLI'!1 Fain.:
C. LOCATION OF WELL SITE — Where the injection wells are phyiicatly located:
(1) Parcel Identification Number (PIN) t)fwell site; Con n l; l
(2) Physical Address (if different than mailing address):
City State: Zip Code:
D. WELL DRILLER INFORMATION
Well Drilling Contractor's Name:
NC Well Drilling Contractor Certification No.: 2 d' .2
Company Narne:--__Clj in I4 // . 5
Contact Person: C Pr j7) :.4 1 /i 4 EMAIL IL Adds ,ems- f frt 61-41/.5444-1k • /le l
Address: i A EaA
ff
City: e . Iro Zip Code: a A ] 7 State: .l
(County: /V c ► .- i
Office TeleNo.: lb y cell No.: '7 ' 34/_7tj .._._E j-:
cpiwuic 5QM Permit Application tR4vismt !; 24-NG11 > RECENET) r O:► R . LPap
AQUIMP DR(iTl-rTV+ k-C I ION
Oi 119 MI

E. HEAT P`UNIP CONTRACTOR INFORMATION (if different than driller)
Company Name: if - Ine,
Contact Person: Pi$ r.e. / i_.�s Iprn [� EMAIL Address: . r, r2 , �
Address: ? 1 v : r• CR . r 4
City: , C-6472 Zip Code: ? 73n &. State:p1C County: Ce-Art,G
OfceTelcNo.: i9lei 977 Cell No.:9Z9 1 66=21 FaxNo.:
F. WELL CONSTRUCTION DATA
(1) Number of borings to be constructed*: / g Depth of each bring (feet): 3 3
* If existing water supply welts will be used then provide the information in item (4) below.
(2) Chemical additives to he used: R-77 Propylene. glycol Ethanol ✓/
Ocher (other additives will need prior approval by NCDENR before use)
(3) Type of tubing to be used (copper, PVC, etc): i I C- 'T h
(4) Well casing. .lithe well(s) will use casing then provide the type (steel, PVC, plastic_ etc.), diameter, depth,
and extent of casing appearing above ground:
(5) Grout (material surrounding well casing and,'or piping):
(a) Grout type: Cement Bentonite** Other (specify)
•� By selecting b ntonite grout. a variance is. hereby requested to 15A NCAC 2C .0213()(1)(A), which requires a cement type grout.
(b) Grout depth of tubing (reference to land surface): from 3 _ to _.33 S (feet)
If well has casing. indicate grout depth::trom to (feet)
G. WELL LOCATIONS — Maps roust be scaled or otherwise accurately indicate distance,' and orientations of
features located within 1001) feet of the injection. well(s). Label all features clearb and include a north arrow
( I ) Attach a site -specific map showing the locations of the following:
* Proposed injection wells * Buildings . * Property boundaries
Surface water bodies " Water supply welts
J
P Septic tanks and associated spray itrigatkm sites, dram fields, or repair areas
* Existing or potential sources or groundwater contamination
(2) Attach a topographic map of the area extending 1 /4 mile from the injection well site that indicates the
facility's location and the map name.
NOTE: In most cases, an aerial photograph of the property parcel showing property lines and structures can be
obtained and downloaded from the applicable county GIS website. Typically, the property can be searched by
owner name or address. The location of the wells in relation to property boundaries, houses, septic tanks, other
wells, etc, can then be drawn in by hand Also. a `layer' can be selected showing topographic contours or
elevation data.
GPWUIC 5QM Prrmii. Application {Rev iced i i.+ :'2t)1 I) Page 2

H. CER'fIFlCA TION (to be signed as required below or by that person's authorized agent)
15A NCAC 02C .021 l(b) requires that all pennit applications shall be signed as follows:
I. for a corporation: by a responsible corporate officer,
2. for a partnership or sole proprietorship: by a general partner or the proprietor, respectively;
3. for a municipality or a state, federal, or other public agency: by either a principal executive
officer or ranking publicly elected official;
4. for all others: by the well owner (which means all persons listed on the propertv deed).
If an a11thorized age.nt is signing on behalf of the applicant, then supply a letter signed by the
applicant that names and authorizes their agent to sign this application on their behalf.
''I hereby certify, under penalty of law, that I have personally examined and am familiar ·with the information
submitted in this document and all attachments thereto and that, based on my inquiry of those .individuals
immediately responsible for obtaining said information, I believe that the information is true, accurate and
complete. I am aware that there are significant penaities, including the possibility of fines and imprisonment,
for submitting false information. I agree to construct, ope.rate, maintain, repair, and if applicable, abandon the
injection well and all related appurtenances in accordance with. the approved . specifications and conditions of
the Pennit."
~~~:... . .
Signature of Prope~~~1---------
_f/ea/her /-l. 5.ola Wy')
Print or Type Full Name I
s~~~y~~e,.~
·,)tJ AnY\ C . {©t,(..,r-+on
Print or Type Full Name
Signature of Authorized Agent, if any
Print or Type Full Name-
Submit two copies of the completed application package to:
DWQ-Aquifer Protection Section
1636 Mail Servictl Center
Raleigh, NC 27699-1636
Telephone [phone]
GPU/UIC 5Qivl Pem,it Application (Revised 1/24/201 I)
RECEIVED I DENR; DW('
AQUIF=i=R·PRmr:r.r,m, tt1:ci10N
OCT 1 9 2D11
Page 3
•
17 October 2011
To whom it may concern,
As the property owner, I have authorized a Geothermal HVAC system to be
installed at 8829 Midway West Rd Raleigh, NC 27617.
I understand that this installation includes the drilling of 20 Geothermal wells,
electric work, installation of new duct work, installation of a small pump housing,
and the pouring of a concrete pad for the packaged HVAC unit to be placed.
Property Owner Name: ,JoA r+n
Property Owner Signature:
Kyma Representative Name: Wi7qie, # . law,
i
Kyma Representative Signature: LA:
Date: I o/n//
ty06 P_&S AttA.4Pr
?-85^ gcy
RECE VEO: 0 R I MO,
AOurF;R'vRI1Trelnlq SFci01
OCT 19 MI

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AGREEMENT OF LEASE
BETWEEN
Joann C. Barton, LANDLORD
AND
.Kyma Technologies, Inc. , 'IENANT
........ ~. ... ,. . . ......
----·---·-------
LEASE
STATE OF NORTH CAROLINA
COUNTY OF WAKE
. l . TfilS LEASE, made this the __ day of Nove mber , 2009 by and bi;tw~, Joann c.
Barton • having a notice address of: 4 08 Rosehaven-Dr., Ralei gh, NC 27609 I ,
hereinafter called "LaadJord''; and K y ma Technologleti , Inc. , having a notice address of: i 8829
Midwny West Rd., Raleiim, Ne;; 27617 , hereafter called .. Tenant";
WITNESSE1H:
Upon the terms and conditions hereinafter set forth, the Landlord leas~ to Tenant and the Tenant 1Jses from
Landlord, the property hereinafter described: j
1. DEMISED PREMISES. The property hereby leased to Tenant (the "Demised Premises") J that area
shown on Exhibit A hereto attached, which consists of approximately 7 ,000 square feet, located at __D22
Midway West Rd .• Raleigh, NC 27617 , together with the common areas. if any, in the
building and on the lot where the Demised Premises an: located (said building) and lot, including the !Demised
Premises, being hereafter called the "Landlord Property". (
;
2. TERMS. i
2.1 Initial Term. The Commencement Date of this Lease shall be the earlier of the date that Te~t takes
occupancy in any part of the Demised Premises, or December l , 2009 . This Lease shall terminate
(unless extended as herein provided) at midnight on November 30, 2013 ~
2.2 Year. The initial tenn of Lease and any properly exercised extension periods are hereafteJ togcthec
called the ''Lease Tenn". The first "Calendar Year" of this Lease shall begin on Januazy 1 of the year of the
Commencement date, and end December 31 of that $8llle year. ' l
i . • • . i 3. USE. Tenant shall occupy the Demised Premises on commr:ncement of the Lease Tenn and thereafter
continuously use the .Demised .Premises only for research and manufacturing and sales for nitride based materials, but
for none other without Landlord's prior written coment. In no event shall Tenant make any use of the jDemised
Premises which: (a) violates any governmental laws, rules or regulations; (b) violates any recOJ"ded restrictive
covenants applicable to the Demised Premises; (c) is or might constitute a nuisance; or (d) makes hazard} liability,
casualty, property, or other required insurance unavailable to Landlord on Landlord's Property. Tenant shall tjot permit
its agents, employees, contracton. or invitees to place damaging loads, on the parking lots and drives located thereon.
Also, no materials, supplies, packaging, trash or any other items shall be stored or placed outiiide the !Demised
Premises. In the event Tenant does store or plB(lC any items outside of the Demised Premises, Landlord shall have the
right, after giving 90 days notice to Tenant, to remove and dispose of such items at Tenant's expense, and without any
liability to Tenant 1
4. RENT.
1;
4.1 Minimum. Rent. For the purposes of this Lease, all Minimum Rent payable under Sections 4 and S
of this Lease are hereafter together called "Rent". All Rent payable by Tenant shall be paid without prcvi~ demand
by Landlord. and without setoff or deduction. Subject to any adjustments provided in Section S hereof, Tenant shall
pay Minimum Rent dµring the Lease Term in the amount of S 5.S00.00 per month. One monthly installment of
Minimum Rent shall be due and payable on the date of execution of this Lease by Tenant for the first month's rent, and
a like monthly installment shall be due and payable io advance on or before the first day of each subsequent calendar
month during the Lease Term. In the event the Lease Term commences other than on the first day of the month,
Minimum Rent at the above rate prorated until the end of the first calendar month of the Lease Tenn, shall be due and
payable on the date of execution of this Lease. !
...... , ,._ ...•• ..,.,._, . . . . . . ii
4..2 Late ·Fees ~-8'iid Check lt'ees, In addition to such remedies as mey be provided under Section 15 of
this Lease, Landlord shall be entitled to a late charge for each monthly Minimum Rent payment which is past'.~ue more
than five (5) days, equal to the greater of FIFTY DOLLARS ($50.00) or five percent (5%) of such past due :i,.,tinimum
Rent payment after receipt of written notice from the Landlord. In addition to said late charge, Land~ shall be
entitled to receive a service charge of five pcm:ent (S¾) of the amount of any rent check given by Tenant to :'.wdlord
which is not honored when first presented for payment by Landlord. . ·,
s. RENT ADJUSTMENTS, Toe Minimum Rent shall increase as stated on Exhibit A.
6. TICAM EXPENSES. (Intentionally Deleted) Defined. For the purposes of this Lease, tTICAM
Expenses" (Taxes, Insurance, and Common Area Maintenance Expenses) shalt mean and include; all costs and
' !1
expenses incurred by landlord attnbutable to the ownership, operation, maintenance, and management of tbc,'.Landlord
Property, including. but not limited to, (a) all ad valorem taxes (property taxes) to be paid as stated in Exhi~it C; (b)
hazard and liability insurance prmniums, to be paid by Landlord; and (c) common area maintenance to be paid by
Tenant; and (d) the following additional expenses: Maintenance of all equipment and fixtures OD premises that an,
directly related to Tenants business. l
j
·7. UTD..ITIES. Tenant shall promptly pay all charges 'for. utilities serving the Demised Premises.
including. without limitation, electricity, telephone, gas, water, and sewer. In the event any utilities are not separately
metered _for Tenant, Tenant shall pay its proper pro rata portion of such utilities in common with others usi4g off the
same meter. '
8. TENANTtS ACCEPTANCE AND MAINTENANCE PF DEMISED PREMISES. l
8.1 "As Is" CondJtion. Except for Punch List items described in any Attachment appendk hereto,
Tenant's occupancy of the Demised Premises represents to the Landlord that Tenant'has examined and inspected the
same, finds them to be as represeated by the Landlord, and satisfactory for Tenant's intended use; and evidences
Tenant's ~ce of the Demised Premises in all respects "AS IS" and "HERE IS" l
'
8.2 Landlord Maintenance. Landlord's only obligations with respect to the repair and mainJnance of
the Demised Premises under this Section shall be: (a) for repairs necessitated by structural defects in the original
construction of the Landlord Property, or by tho negligence or willful acts of Landlord or another tenant of the
Landlord Property. or any of their agents, employees, invitees, or contractors; (b) to assign all warranties and use
reasonable best efforts to assist Tenant in enforcing any and all warranties provided by any contractor, subcontractor,
mechanic or material with respect to the Demised Premises; and (c) for maintenance, upkeep and repair of the roof and
structural portions of the Demised Premises (excluding, however, plate glass and doors of every description upless due
to structural defects and/or stress). :
8.3 Tenant Maintenance. Tenant shall take good care of the Demised Premises and the tlndlord's
personal property, fixtures and appurtenances there.in and thereon dw-ing the Lease Term, and shall perform all
maintenance and make all repairs to the Demised Premises thereon necessary to keep the same in good qrder and
condition, excepting only: (a) Landlord's obligations set forth above; (b) ordinary wear and tear, (c) Joss or damage
resulting from fire, casualty or condemnation; (d) complete replacement of, or repairs to, any mechanical system, such
as HV AC, plumbing, and electrical which repau would cost in excess of forty percent ( 40%) of the origjn/iJ cost of
said system. Tenant shall pay the first Fifteen Hundred Dollars ($ 1,500.00) per year of all costs associated with each
repair required of the Landlord under Section 8.3; (e) and the Landlord shall pay the balance. Tenant 'is tot.ally
responsible for any and all equipment and furnishings installed to premises for its own use. i
' 8,4 Maintenance Contracts. Tenant during the entire Lease Tenn shall eriter into and maintain, at its
expense, a maintaiac,ce contract covering the HVAC systems located on the Demised Premises with a service
coJllraCtOr 11cceptable to and approved by Landlord, which contract shall provide for routine maintenance, including,
but not limited to, timely changing of all filters (at recommended intervals), adjustment and inspection of air;handling
mechanisms and control equipment, perfonnance of necessary l"brication, and testing and other such normal
maintenance procedures. i
8.5 Tenant's Liability. Subject to the provisions of Section 9.7 hereof, all damage or inji to the
Demised Premises or the remainder of the Landlord Property caused by any willful act or negligence of Tenant, its
agents. employees, licensees. contractors, invitees or visitors, shall be repaired by Landlord at Tenant's sole'. expense,
and Tenant shall reimbunic Landlord for all costs and expenses thus incurred by Landlord within thirty (30) days after
receipt of invoice from Landlord. j .
8.6 Tenant Alterations aod Trade ;Fixtures. Tenant shall not make any alterations or chanles to the
Demised Premises withol.lt Landlord's prior written consent Tenant shall be permitted to install tmde fixtures in the
Demised Premises, and, absent a Default by Tenant hereunder, to remove said trade fixtures from the [:Demised
Premises upon the termination of this Lease. If Tenant does remove such trade fixtures, Tenant shall return the
Demised Premises to the same condition as existed at the time of original entry, ordinary wear and tear excepted.
Provided however, Tc:nant shall not remove permanent improvements made by Tenant to the Demised Premises; and
all such improvements shall belong to Landlord at the termination of this Lease, and shall not be damaged in the
removal of Tenant's trade fixtures. If Tenant does not remove the trade fixtures at the end of the Lease Tenn,Landlord
shall have the option either to declare such fixtures abandoned and Landlord the owner thereof, or to deritand that
Tenant_i~romp~y ~ove the same at Tenant's expense, returning the Demised Premises to the condition' required
herein. · · · -· . j
8.7 Lice~sed Contractors, Tenant shall not permit any work to be performed anywhere 'Yithin the
Landlord Property except by duly licensed conttactora, each !)f whom must carry adequate general public: liability,
builder's risk, and worlcman's compensation insurance, certificates of which shall be furnished Landlord prjor to the
commencement of any such work on the Landlord Property. At'no time may Tenant do any work that results in a claim
of lien against Tenant's or Landlord's interest in the Demised Premises, and Terumt shall release of recordjfrom the
Landlord Property under N .C .G .S . 44A-l 6 any lien so filed, within thirty (30) days after such lien·has been fil,ed.
8.8 No Dangerous Condition. Tenant shall not permit or allow any act or deed to be performW on the
Demised Premises which is likely to cause injury to any person or to the Landlord Property. Tenant shall, at '.all times,
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keep the Demised Premises and the entryways, parking areas, sidewalks. and delivery areas (if any) adjjining the
Demised Premises in a clean, neat, and orderly condition and free from rubbish, dirt, snow, standing water and ice. . l
8.9 Access by Landlord. Landlord shall have the right, either itself or. through its authorized ~gents,· to
enter the Demised Premises at all reasonable times to examine the same, to show them to prospective tenants fiir other
spaces in the Landlord Property or for the Demised Premises, to allow in~pection by mortgagees, and to ~ake such
repai,s, alterations, or changes as Landlord dectns necessary. • . ,i
:i 9. INDEMNIFICATION AND INSURANCE.
9.1 Liability Insurance. Subject to the tenns of Section 9.7 hereof, Tenant shall indemnify ;Landlord
and save Landlord harmless from and against all claims, actions, damages, liability and expenses in conncctkm with
loss of life, bodily injury, and damage to propaty occurring in or about the Demised Premises, occasioned wholly or in
pan by any act or omissim of Tenant, its agents, licensees, contractors, customers, invitees or employees. Tenant shall,
at all times, maintain in effect a comprehensive gencml public liability policy applicable to the Demised1Premises
through an insurance company approved by Landlord, with combined single limit$ of liability of at least ONE
MILLION AND 00/100 DOLLARS ($1,000,000.00). Such policy shall ~how Landlord and Landlord's Managing
Agent, if any, as additional insured, proof of such policy shall be furnished to Landlord on or ~fore the
Commencement Date. and at all other times requested by Ll!llldlord, but not more often than twice annually, unless
Tenant shall be in Default under this Lease. At least fifteen (1 S) days prior to lhe expiration or termination date of such
policy, Tenant shall deliver to Landlord proof of a renewal or replacement of the policy. i
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9.2 Litigation and Attorney Fees. In case Landlord shall be' made a party to any litigation commenced
by or against Tenant, or its partners, officers, directors, agents, contractors, customei:s or employees, Tei}ant shall
protect and hold Landlord hannless there from, and shall pay all reasonable costs,.expenses, and reasonable attorneys'
fees incurred or paid by Landlord in connection with such litigation. 1
9.3 Tenant's Property aod Insurance Thereoo. Tenant shall prope'rly maintain end cak for its
property on the Demised Premises, and shall also carry, at Tenant's expense, hazard insurance with extended coverage,
insuring against loss or damage to Tenant's property situated in or about the Demised Premises to the full ~asonable
insurable value thereof with insurers accepCable to Landlord. . ':
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9.4 Thirty (30) Day Notice. All policies of insurance to be maintained by Tenant under this L~ shall
provide that: (a) they may not be cancelled or materially amended except-upon not less than thirty (30) days prior
written notice to Landlord and any mortgagee of Lti.ndlord of which such insurer has actual notice; and (b)(coverage
may not be denied there under, nor may the amount payable there under be diminished, by any negli~t act or
omission of Landlord or Tenant, or their successors or ~igns.-'
I 9.5 Landlord's Insurance. Landlord shall maintain durillg the Lease Tenn a Commerciaf Package
Policy of casualty insurance (or the successor to such coverage) on Landlord's interest in the Landlord Propcfu, for the
full replacement on ~dlo.rd's interest in the Landlord Property for the full i:_eplacement cost of the Landlord Property,
and with agreed amount and inflation cost endorsements; provided, however, Landlord shall not be obligatcd1 to insure
any furniture, equipment or other personal property placed in the Demised Premises by or at the expense of Tt!nant. ;
9.6 Tenant Increases Land1ord's lmunnce. If, because of anything done, caused to ;be done,
pennitted, or omitted by Tenant, the premium rate for any casualty insunmce maintained by Landlord shall be raised,
Tenant agrees that the amount of the increase in premium for insurance maint.ainttl by Landlord shall ~ paid by
Tenant to Landlord within fifteen (15) days ofter receipt of written demand from Landlord, and shall be in addition to
all other payments to be made by Tenant under this Lease. In addition, if Landlord shall demand that Tenant remedy,
the condition which cawed the i.ocrease in the insurance premium rate, Tenant shaII remedy such condition within
thirty (30) days after receipt of written demand from Landlord. ·
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9, 7 Mutual Waiver of Subrogation. Each party waives all claims arising in any ,n81lner in its (the
Injured Party's) favor and agajn,t the other party for loss or damage to the Injured Party's property located ~thin or
constituting a part or all of the Landlord Property. This waiver applies to the cirtent the loss or damage is covered by:
(a) the Injured Party's insurance; or (b) the insurance the Injured Party is required to carry under this Lel'ISC, ~bichever
is greater. This waiver alw applies to each party's directors, officers, employees, shareholders, partners, and agents,
but does not apply to claims caused by Landlord's. Tenant's, or such other parties' willful misconduct. All wlicies of
insurance maintained by either Landlord or Tenant under the tenns of this Lease shall contain a provision wh~reby the
insurer waives all rights of subrogation against Landlord or Tenant. 1
10. CASUALTYLOSS.
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10.1 Landlord's Duty to Restore. If'lhe Demised Premises $all be partially damaged by f~ or other
casualty insured under insurance policies which Landlord maintains under this Lease ("Landlord's Policies'.'), and if
Landlord's lender(s) shall permit such insurance proceeds to be so used, then, IIJIOn Landlord's receipt of the jnsurance
proceeds, Landlord shall, except as otherwise pr~vided herein, promptly repair and restore the same (exclusive of
Tenant's property) substantially to the condition thereof existing immediately prior to such damage or destruction;
limited, however, to the ext.ent of the insutance proceeds received by Landlord for such casualty. If, by reasoo of such
OCCWTence: (a) the Demised Premises is rendered wholly untenantable; (b) the Demised Premises is darnagedlin whole
or in part as a result of a risk which is not covered by Landlord's Policies; (c) Landlord's lendcr(s) shall not' permit a
sufficient amount of.the insurance proceeds to be used for restoration purposes; (d) the Demised Premises is <lamagcd
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k"!> fu< Ikmlmd pn,n;,,, and fu< =byway~ p,,kh,g .._ odewalk; ~ d,J_ ...., (W ony) l ... !ho
Demised Premises in a clean, neat, and orderly condition and free from rubl!ish, dirt, snow, standing water and ice.
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8..9 Atcess by Landlord. Landlord shall have the right, either itself or. through its authorized '.~gents,· to
enter the Dc:mised Premises at all reasonable times to examine the same, to show them to prospective tenants' fi:ir othc:r
spaces in the Landlord Property or for the Demised Premises, to allow in~pection by mortgagees, and to ~ake such
repairs, alterations, or changes as Landlord deems necessary. ·,
9. INDEMNIFICATION AND INSURANCE.
9.1 Liability Insurance. Subject to the terms of Section 9. 7 hereof, Tenant shall indemnify;Landlord
and save Landlord harmless from and against all claim!il. actions, damages, liabili'Y and expenses in conncct.iQn with
loss of1ife. bodily injury, and damage to propc:rty occurring in or about the Demised Premises, occasioned wholly or in
part by any act or omission of Tenant, its agents, licensees, contractors, customers, invitees or employees. Tenant shall,
at all times, maintain · in effect a comprehensive general public liability policy applicable to the DemisedjPrcmises
through an insurance company approved by Landlord, with combined single limits of liability of at least ONE
MILUON AND 00/100 DOLLARS ($1,000,000.00). Such policy shall ~how Landlord and Landlord's Managing
Agent, if · any, as additional insured, proof of such policy shall be furnished to Landlord on or b9fore the
Commencement Date. and at all other times requested by Landlord, but not more often than twice annually, uulcss
Tenant shall be in Default under this Lease. At least fifteen (15) days prior to the expiration or tennination da!e of such
policy, Tenant shall deliver to LandlOJd proof of a renewal or replacement of the policy.
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9.2 Litigation and Attorney Fees. In case Landlord shall be' made a party to any litigation commenced
by or against Tenant, or its partners, officers, directors, agents, contractors, customei:s or employees, Teifmt shall
protect and hold Landlord ha.rm.less there from, and shall pay all reasonable costs,-expenses, and reasonable a.ttomeys'
fees incurred or paid by Landlord in connection with such litigation. . 1
9.3 Tenant's Property aod Insurance Thereon. Tenant shall prope'rly maintain and cJe for its
property on the Demised Pn::mises, and shall also cany, at T=t's expense, hazard insurance with extended coverage,
insuring against loss or damage to Tenant's property situated in or about thi:: Demised Premises to the full reasonable
insurable value thereof with insurers acceptable to Landlord. \ . l
9.4 Thirty (30) Day Notice. All policies of insurance to be maintained by Tenant under this L~ shall
provide that: (a) they may not be cancelled or materially amended except-upon not less than thirty (30) days prior
written notice to Landlord and any mortgagee of Landlord of which such insurer has actual notice; and (b) /coverage
may not be denied there 1.mder, nor may the amollllt payable there under be diminished, by · any neglig~t act or
omission of Landlord t;ir Tenant, or their successors or as.signs: '
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9.5 Landlord's Insurance. Landlord shall maintain during the Lease Tenn a Commercial· Package
Policy of casualty insurance ( or the successor to such coverage) on Landlord's interest in the Landlord ProJ>CJ'.fy for the
full repJacemcmt on Landlord's interest in the Landlord Property for the full z:eplacement cost of the Landlord ·Property,
and with agreed amount and inflation cost endorsements; provided, however, Landlord shall not be obligated1to insure
any furniture, equipment or other penonal property placed in the Demised Premises by or at the expense of T~nant.
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9.6 Tenant Increaus Landlord's Inaurance, If, because of anything done, caused to ,be done,
pennitted, or omitted by Tenant, the premium rate for any casualty insurance maintained by Landlord shall be raised,
Tenant agrees that the amount of the increase in premium for insurance maintained by Landlord shall ~ paid by
Tenant to Landlord within fifteen (15) days after receipt of written demand from Landlord, and shall be in addition to
all other payments to be made by Tenant under this Lease. In addition, if Landlord shall demand that Tenant remedy
the condition which caused the increase in the insurance premium rate, Tenant shall remedy such condition within
thirty (30) days after receipt of written demand from Landlord. ·
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9.7 Mutual Waiver of Sub.roption. Each party waives all claims arising in any manner in its (the
Injured Party's) favor and against the other party for loss or damage to the Injured Party's property located ;within or
constituting a part or all oftbe Landlord Property. This waiver applies to the extent the loss or damage is covered by:
(a) the 1njurcd Party's insurance; or (b) the insurance the Injured Party is required to cany under this Lease, whichever
is greater. This waiver also applies to each party's directors, officers, employees, shareholders, partners, arid agents,
but does not apply to claims caused by Landlord's, Tenant's, or such other parties' willful misconduct. All J>.Olicies of
insurance maintained by either Landlord or Tenant under the tenns of this Lease $all contain a provision whereby the
insurer waives a!I_rights of subrogation against Landlord or Tenant. 1
10. CASUALTY LOSS.
10.1 Landlord's Duty to Restore. If the Demised Premises sJ)all be partially damaged by ruJ or other
casualty insured under insuraocc: poJicies which Landlord maintains under this Lease ("Landlord's Policies'.'), and if
Landlord's lender(s) shall permit such insurance proceeds to be so used, then, upon Landlord's receipt of the j.nsurance
proceeds, Landlord shall, except as otherwise pr~vided herein, promptly repair and restore the same (exclusive of
Tenant's property) substantially to the condition thereof existing immediately prior to such damage or destruction;
limited, however, to the exr.ent oftbe insurance proceeds received by Landlord for such casualty. If, by reason of such
occurrence: (a) the Demised Premises is rendered wholly untenantable; (b) the Demised Premises is daJnagedlin whole
or in part as a result of a risk which is not covered by Land!Of'd's Policies; (c) Landlord's lc:nder(s) shall not' permit a
sufficient amount of.the insurance proceeds to be used for restoration purposes; (d) the Demised Premises is 'damaged
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in whole or in part during the final Lease Year of the L• Tenn. (including 1111y then properly exercised 4«cn!ion
periods); or (c) the improvements included in the Landlord Property are damaged (whether OT not the Denused
Premises is damaged} to an ex.tent of fifty percent (50%) or more of their then fair market value; Landlord iay elect
either to repair the damage. or to cancel this Lease by written notice of cancellation given to Tenant within sixty (60)
days after the date of such casualty; and thereupon this Lease shall terminate, and Tenant shall vacate and summder the
Demised Premises to Landlord within fifteen (1S) days after receipt of sucn notice. If no such notice is given by
Landlord within said sixty (60) day period, then Landlord shall restore the Demised Premises, as provided above. ID
addition, Tenant may also tenninate this Lease; by written notice to Landl~rd at any time between the onejhwidred
eighty-f"ust {l 81 •) and one hundred ninety-fifth ( l 95,.) days after the Occum,lnce of any such casualty, if Landlord shall
fail to restore the damaged portions of the Demised Premises within one hundred eighty ( 180) days a&r such ksualty.
However, if Landlord is prevented by any cause beyond its reasonable control, from completing the rcstorati6n within
said one hwtdred eighty ( 180) day period, and if Landlord shall provide Tenant with written notice of such cause for
delay within fifteen (15) days after the occurrence thereof, then Landlord shall have an additional period beyond said
one hundred eighty (180) days, equal to the period Landlord is delayed by causes beyond its reasonable control, in
which to restore the damaged areas of the Demised Premises; and Tenant may not elect to ttmninate this ~ \llltil
said additional period has expired with Landlord having failed to comp!~ such restoration. In such case, ,Tenant's
fifteen (IS) day right of termination shall begin t.o nm upon the expiration of Landlord's additional ~riod for
restoration. Upon the, termination of this Lease, Tenant's liability for the Rent and other charges reserved tiercunder
shall cease as of the effective date of the termination of this Lease. ~
' 10.2 Tenant's Insurance. Unless th.is Lease is terminated as ~ores~d, Tenant shall promptly '.repair or
replace Tenant's property in the Demised Premises to at least tho condition· which existed prior to the casualty to the
Demised Premises, and the proceeds of all insurance carried by Tenant on ~ said property shall be held and disbursed
for the purposes of such repair or replacement, to the extent required for sucli purposes. /
' ' . . I 10.3 Rent Abatement. EKcept as hereafter provided to the contrary, if by reason of such cas;uaity the
Demised Premises is rendered wholly untenantable, the R~t lllld other charges payable by Tenant shallj be fully
abated, or if only partially damaged, such Rent and other charges shall be abated proportionately as to that P,Ortion of
the Demised Premises rendered untenantable, in either event (unless the Lease is tenninated, as aforesaid)!-ftom the
dato of such casualty 1DJtil fifteen (1 S) days after notice by Landlord to Tenant that the Demised Premises liave been
substantially restored, or until Tenant has resumed its business operations in the Demised Premises, whicbover shall
occur sooner. Tenant shall continue the operation of Tenant's business in the Demised Premises or any part tqereofnot
so damaged diaing any such period, to the extent reasonably practicable from the standpoint of prudent ! business
management, and, except for such abatement of Rent and other t:hargeii as herelnabove set forth, n~g herein
contained shall be COPStrued to abate T~t•s obligations hereunder. Provided however, and subject to the:1terms of
Section 9.7 hereof, Tenant shall reimburse Landlord, within thirty (30) days after me completion of such re~oration,
for the full cost of such restoration if any such damage or casualty shall be. ~used by the negligence or other wrongful
act or omission of Tenant, or of Tenant's subtenants, concessionaires, lice,nsees, contractors, employees, agents, or
invitees, aod there shall be no abatement of Rent or other charges which are Tenant's obligation under this Lease.
Except for the abatement of the Rent and other charges hercinabove set fCJrth, Tenant shall not be entitled to, and
hen:by waives, all claims against Landlord for any compensation or damage for loss of use of the whole or any part of
the Demi$ed Premises, and for any inconvenience or annoyance occasioned by any such damage, destruction, repair, or
restoration. · '
11. ENVIRONMENTAL COMPLIANCE.
11.1 Tenant's Responsibility. Tenant covenants and agrees th~t the Demised Premises will. at1 all times
during its use or occupancy thereof, be kept and rnainlllined so as to comply .with all now e'tisting or hereafter enacted
or issued statutes, laws, rules, ordinances, orders, permits, and regulations of all state, federal, local, ~d other
governmental and regulatory authorities, agencies, and bodies applicable to the Demised Premises pertjlining to
environmental matters, or reguJating, prohibjting or otherwise having to do ~ith asbestos, radon, PCB's and all other
toxic, radioactive, or hazardous wastes or materials, including, but not limited to, the Federal Clean Airl Act, the
Federal Water Pollution Control Act, and the Comprehensive Environmental Response, Compensation, and · Liability
Act of 1980, as.from time to time amended ( all hereafter collectively called "Laws''). No material shall be' installed
anywhere else within the Landlord's Property, by Tenant, or any employee, agent, or contractor of Tenant, which
contains any asbestos or other toxic or hazardous waste or substance; or which causes, or could cause all 9r any of
Landlord Property to be in violation of any Laws: (a) when such material is installed; (b) while such material n,maim
thereon; or (c) when such material is disturbed or removed. ; I
11.2 Tenant's Liability. Tenant shall hold Landlord free, harmless, and indemnified from~ penalty,
fine, claiin, demllild;'liability, cost; or charge whatsoever which Landlord does or may incur by reason of1Tenant's
failun: to compJy with this Section; including, but not limited to: (a) tlte cost of bringing the Landlord 's Property into
compliance with all Laws; (b) the reasonable cost of all appropriate tests and examinations of the Landlord Property to
confirm that the same bas been brought into compliance with all Laws; and (c) the reasonable fees and expenses of
Landlord's attorneys. engineers, and consultants incuJTed by Landlord in enforcing and confinning compliance with
this Section. ;
11.3 Inspections by Landlord. Landlord and its engineers, technicians, and consultants (colleciively the
"Auditors") may, from time to time as Landlord deems appropriate, conduct periodic tests and elQ!Dlinations
("Audits") of the Demised Premises to confinn and monitor Tenant's compliance with this Section. Such Audits shall
be conducted in such' manner as to minimize the interference with Tenant's permitted activities on the fDemised
Premises; however, in ail cases. the Audits shall be of such nature and scope as shall be reasonably required by then
existing technology to confinn Tenant's c:ompli.anoe with this ~ction. Tenant shall fully cooperate with the!Auditors
in the conduct of such Audits. The cost of such Audits s~II be paid by Laridlord unless a Defauh has occurkd und~
this Lease, or unless an Audit shall disclose a material failure of Tenant to comply with this Section, in eith~ ofwbich
cases the cost of such Audit, and the cost of all subsequent, Audits made dl;lling the Lease Tenn and within thirty (30)
days thereafter (not to exceed two [2] such Audits in any consecutive twelve [12] month period), shall be paid for by
Tenant within thirty [30) days of receipt by Tenant of invoice, for such audits. ;
11.4 Limitation OD Tenant Liability. Provided, however, tlie foregoing covenants md unded.aic-mss of
Te~ant C4?Rtain~ in this Section shall not apply to ~y condition or matter constituting a violation of anyjLaw: (a)
which existed pnor to the commencement of Tenant s use or occupancy of any portion of the Demised Premises, and
~ not caused, in whole or in ~• _by !enant or Tenant's agents, employees, officers, partners, co~etors, or
mv1tecs; or (b) to the extent such v1olanon 1s caused by, or results from, the acts or neglect!> of Landlord other tenants ~ t_he Landlord Property, or Landlord's or such other tenants' employees, officers, partners, contractors, rguests or
mvrtees. .!
11.5 Tenant's Liability After Termination of Lease. The covenants contained in this Section shall
survive the expiration or termination of this Lease, and shall continue for so long as ·Landlord, or its successors and
assigns, may be subject to any expense, liability, charge, penalty, or obligation _against which Tenant has agreed to
indemnify Landlord under this Section. '·
12, RULES AND REGULATIONS. Tenant shall comply 'with all applicable laws, ordinJnces a.ncl
regulations affecting the Demised Premises, and general rules and regulations for tenants of the Landlord Property as
may be developed from time to time by Landlord md delivered to Tenant. '
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13. SUBORDINATION -AITORNMENT. This Lease shall be subordinate to any mortgage or deed
of trust (both hereafter a ''Mortgage"} which may heretofore or hereafter be placed against the Demised Premises by
Landlord, unless the mortgagee or beneficiary thereunder (both hereafter a "mortgagee") requests that this :Lease be
superior to its Mortgage, in which event this Lease shall be superior. In the event any proceedings are brought for
foreclosure of any Mortgage on the Demised Premises. Tenant will attom to the purchaser at a foreclosure(salc, l!lld
any assignee thereof-; and recognize such purchaser OT as.signcc as Landlord,: under this Lease provided such purcha5er
or assignee agrees not to disturb Tenant's possession or rights under this Lease or in the Demised Premises, $0 Jong as
Tenant is not in Default under the tenns of this Lease. Tenant shall execute, within five (S) business days after
L1111dlord's request, such instruments evidencing such attomment and subordination of this Lease and related matters
as Landlord or its mortgagee shall request; and, as often as requested, shall sign estoppel certificates confm.ning any
factual matter requested which is true and is within Tenant's knowledge regarding this Lease, the Demised Premises,
or Tenant's use thereof. Tenant agrees to give any such mortgagee of whom Tenant has been informed wri~n notice
of lillY Default or failure to perform by Landlord under this Lease. Such mortgagee shall have a reasonable ·period of
time after such notice, in all event! at least thirty {30) days, to cure any Default; and Tenant shall accept such cure if
timely made by such mortgagee. Further, Tenant agrees to permit any such mortgagee, purchaser, or their successors
and assigns, on acquiring Landlord's interest in the Demised Premises or µte Lease, to become substitute ·Landlord
hereunder, with liability only for such Landlord obligations \IIldcr this Lease as accrue after Landlord's interest is so
acquired.
. I 14. SIGNS. Tenant may not erect, install or display any sign or advertising material upon the ·.Landlord
Property without the prior consent of Landlord. Tenant shall be responsible for obtaining all sign permits and permit
costs; and purchasing and installing their own signage for the building. · ·
15. DEFAULT.
15.1 Remedies. If Tenant fails to pay any Rent or other sums payable by Tenant as provided in this Lease
within ten {10} days after the notification date thereof, or breaches any other agreement or obligation hereinjset forth,
and fails to cure such breach within ten (IO) days after delivery of written notice thereof from Landlord, then a
"Default'' by Tenant shidl have occurred under Chis Lease, and, .in addition to any other legal right or remeay which
Landlord may have for such Default. Landlord may, at its sole election and without further notice to Tenan~ exercisic
one or more or all of the fo11owing remedies: l
(a) Re-enter the Demised Premises and Correct or repair any condition · which shall ccinstitute a
failure on Tenant's part to perform or abide by the tenns of this Lease, and Tenant shall reimburse Landlord within
fifteen (l5)days of receipt of invoice by Tenant for any expenditures made by Landlord in mu:ing such corrections or
repairs; ·
. ' (b) Re-enter tlle Demised Premises anJ Remove there from Ten::nt ar..d all Tenant property. end
place or store such Tenant property in any public warehouse or place of safekeeping selected by Landlom, lit the sole
expense and risk of Tenant, all of which property Tenant shall be deemed to have abandoned and forfeited to'Landlord
if Tenant shall not claim and remove such property and pay all reasonable storage charges applicable thereto within
tbh-ty (30) days after delivery of written notice to remove from Landlord; 1
(e) Re,.let the Demised Premises or any part thereof for such periods, and at such rentals and other
terms and conditions as Landlord. in its sole discretion, may deem advisable, and Landlord may make alterations or
repairs to the Demised Premises which it may deem necessary or appropriate to facilitate such re-letting; aod Tenant
shall pay on demand all costs of such re-letting including the cost of any such repairs to the Demised Premi~s-If ibis
Lease shall not have been tenninated, Tenant shall continue to pay all Rent due under this Leiu;c up ro and including
the date of beginning of payment of rent by any Sllbsequent tenant of part or all of the Demised Premises, 11nd
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thereafter tenant shall pay monthly during the remainder of~ Lease Tenn the differenoe, if :any, betweeJ! the rent
collected from any such subsequent tenant or tenants and the Rent reserved in this Lease, b~t Tenant shall not be
entitled to receive any excess of any such rents collected over the Rents reserved herein; or ! I
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(d) Terminate this Lease. which termination shall be effec:ted by delivery to T~nant ofwrittkn notice
of such tennination; and upon such termination, Landlord shall recover from Tenant all· damages Landlord may suffer
by reason of such termination, including, without Jim.nation, the reasonable cost, including legal expenses and
reasonable attorneys' fees, of recovering possession of the Demised Premises, and the cost 1of any repairs to 1he
D~ised Premises which are reasonably necessary to prepare the same for re-letting.
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15.2 No Waiver of Righta. No cowse of dealing between Landlord and Tenant, or any delay ou the part
of Landlord in exercising any rights it may have under this Lease, shall operate as a waiver Qf any of the jrights of
Landlord hereunder, nor shall any waiver of a prior Default operate as a waiver of any subsequent Default or Defaults,
and no express waivc,r shall affect any condition, covenant, rule or regulation other than the 'one specified in such
waiver, and only that one for the time and ia the manner speeifically stated. 1 i l
15.3 Remedies are Cumulative. The exercise by Landlord or'any one or more of the remedies ~vided
in this Lease .shall not prevent the subsequent exercise by Landlord of any one or more of the other remedies herein
provided. All mnedies provided for in this Lease are cumulative:, and may; at the election of Landlord, be exercised
alteroativ~ly, successively, or in any other manner, and are· in addition to any other rights provided by law. '.
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15.4 Written Termination. No exercise of any right or remedy by Landlord under tliis Lease sbaU effect a
termination thereof unless Landlord shall elect to terminate this Lease by written notice to Tenant; provided, however,
this Lease shall be deemed terminated upon delivery of such notice oftennination. : ,,
. . . i 15.S Attomey's Fees. Each pstty shall be liable to the oth~r for all reasonabl~ attorney's ;fees and
expenses incurred by the other party enforcing all rights and remedies afforded to it under this L~. ;'
'
16. QUIET ENJOYMENT. If Tenant promptly complies with all of its obligatio~s hereun~, it shall
pea(:Cfully have possession of the Demised Premises during the Lease Term, provided that no action of Landl_ord in its
work in the remainder of the Landlord Property, or in repairing or restoring"the Demised Premises, shall be deemed a
breach of this covellallt, or give Tenant any rig.ht to terminate or modify this Lease. In addition, Landlord shall not be
liable to Tenmrt for injury or damage resulting from acts or omissions of parties other than Landlord occupying or
using any part of the remainder of the Landlord Property. ' [ '
' .
17. CONDEMNATION. If the whole or at least twenty percent (20%) of the Demis~ Premises lire taken
by any governmental body, whether by Court action or by . settlement in lieu thereof, and if the property jso taken
renders the remainder of the Demised Premises unfit for the use thereof by Tenant, then Tenant slia.11 have the option to
terminate this Lease by writtm notice to Landlord within sixty (60) days of such taking. T f the Tenant shall n6t elect to
terminate, or if the taking does not include at least twenty percent (20%) of the Demised Premises. there sliall be an
adjustment of the Rent reflecting, on a pro rata basis, any reduction in Tenant's leased space. All of the condemnation
award, except for damage to or the taking of Tenant's property and Tenant's relocation award, if any, shall be the
exclusive property of Landlord. : ..
18. NO TERMINATION BY SALE. No transfer or assignment of Landlord's interest in the '.oemised
Premises of this Lease shall terminate this Lease. or modify or amend the terms hereof, unless Tenant sliall agree
thereto in writing. The term "Landlord" as used in this Lease means only the owner of the fee'. title to the ·Landlord
Property. The current Landlord, upon any transfer or conveyance of its interest in the Demised Premises.' shall be
entirely freed and raJievc:d of all covenants and obligations of the Landlord hereunder, provided ithat the transferee of
Landlord's interest in the Landlord Property has assumed and agreed 1D cany out BllY and all covtjnants and o~ligatioos
of Landlord hereunder. ·
19. NO PERSONAL LIABILITY. The liability of Landlord and any partners, agents, employees,
stockholden, officers, or dim;tors of Landlord shall be limited to Landlord's interest in the Landlord Property. No
other assets of Landlord or any such other party shall be liable for, or subject to, any liabilities pertaining to this Leaae .
; . ~
: :,
20. TENANT'S ASSIGNMENT-SUBLEASE. Tenant $hall noi transfer, mortgage,'.encumber, assign, or
sublease all or any part of the Demised Premises, or a controlling or majority inte~t in the: stock or partnership
interests of Tenant, or any partner of Tenant, without Landlord's prior written consent. · 1
. , ' !
ll. MISCELLANEOUS. (a) This Lease shall be binding upon the respective parties hereto, and·upon their
heirs, executors, successors and assigns. (b) This Lease $upersedes and cancels all prior negotiations between the
parties, and all changes in this Lease shall be in writing and signed by the party affected by such change; (c} The
singular shall include the plural, and the masculine or neuter includes the other, (d) Each paijty hereto which is a
corporation or partnership (herc:after an "Organization") warrants and represents to the other party hereto' that the
Organization, and any of its partners or constituent members which are partnerships or corporations, are each valid and
existing legal entities, in good standing and duly authorized to transact business in North Carolina, and, if cliffen;nt,
their states of organization; and that all persons executing this Leate on behalf of an Organization, or any partner or
constituent member thereof: have been duly authorized to do so. Further, the execution of this Lease has been duly
authorized by all appropriate ~tion of each Organization. ( e) The Demised P;remiscs· are Ieased subject to all recorded
easements, restrictions, and rights of way legally affix:ting the same. ' i :
!
J __
22. RECORDING. 'This Lease shall not be recorded, but, at the request of either party and at such parry's
expense, a memorandum hereof, containing such information as is necessary to provide adequate record notice of the
existence of the Lease and the terms hereof, including whether options to renew or purchase exist, shall be'prepared
and recorded in the county where the Demised Premises are located.
23. NOTICES. Any notices which Landlord or Tenant is required or desires to he given to the other shall be
deemed sufficiently givens or rendered if in writing and delivered personally, or sent by certified or regi tdred mail,
postage or fees prepaid, to the address listed for such party at the beginning of the tease, or ro such other address as
the intended recipient shall have previously provided to the sender by Iikc notice. All such notices for other
communications shall be deemed delivered, given, and received on the earlier af: (a) the date of actual delivery; or (b)
three (3' business days after retailing by certified or registered mail, ail regardless of refusal to accept delivery or
inability to deliver due to the recipient having failed to keep the sender informed of the recipient's cu.ttent address.
2.4_ SECURITY DEPOSIT. Landlord acknowledges receipt from Tenant of the sum of S 4 875.00
which stun Landlord shall retain, without any interest payable to the Tenant, as security for the performance by Tenant
of each of its obligations beretuxder. After a Default by Tenant undertliis Lease, Landlord may, at its option, ripply said
deposit to curc Tenant's Default; but if, prior to the termivation of this Lease, Landlord depletes said deposit, Tenant
shall immediately restore the amotwt so used by Landlord. Unless the Landlord uses the same to cure a Default of
Tenant, or at the conclusion of the Lease Term to restore the Demised Premises to its condition on the Comrainccment
Date, reasonable wear and tear excepted, Landlord shall, within thirty (30) days of the termination of the Lease, refund
to Tenant the balance of the deposit that the Landlord holds.
25. PAYMENTS. MI Rent and other charges shall be payable by Tenant and addressed to:
Joann C_ Barton
408 Rosehaven Drive
Raleigh, NC 27609
or to such other address as Landlord shall designate by prior•written notice to Tenant.
26_ OTUER PROVISIONS, The following additional provisions are attached hereto and by this reference
made a part hereof (if none, insert `None" in tltc blank space which follows): Based on the signing of this lease,
Landlord agrees to reimburse Tenant fur Tenant Improvements as listed on Exhibit B upon satisfactory
completion of each project
Tenant most give a I20-day notice to Landlord of usteudons to either extending tenancy or terminatfng'tenas ey
prior to Ilse end of this lease agreement.
WITNESS WHEREOF, Landlord and Tenant have caused this Leese to be duly executed in duplicate originals, all as
of the day and year first above written.
TENANT: LANDLORD:
Hying Technologies, inc.
By: _Celdstic6,24,__
Edward Frebbe
Title: COO
COO
Date: 11/31V07
Joann C. Barton
By:
Title:e?wL
Date: &a/AA/9g

EXHIBIT A
RENT SCHEDULE
December 1, 2009 — November 30, 2011
$ 5,500.00 Per Month
December 1, 2011 — November 30, 2013 $ 5,652.26 Per Month'

EXHIBIT B
Pro Rata Share of Tenant Improvernents to be Reimbursed by Landlord
Repair to Retainer Wall
Rtrnt Removal and Paint
Grading and Paving of Parking Lots
$ 2,080.00
$ 600.00
$ 10,681.00
Total for Landlord Improverants Pro Rata Share $ 13,361.00
Landlord will reimburse tenant upon satisfactorily completion of each project.

EXlllBITC
PROPERTYTAXPAYMENTSCHEDULE
Ad Valorem Taxes (Property Taxes) are to be paid as folJows:
Tenant's Pro Rata Share
Year2010 All Taxes Assessed over S 1,450.36
Year2011 All Taxes Assessed over$ 725.36
Year 2012 All Taxes Assessed
Year2013 All Taxes Assessed
Landlord•s Pro Rata Share
$1,450. 6
. $ 725.36
$ 0.00
$ 0.00
I .
RA
NCDENR
North Carolina Department of Environment and Natural Resources
Beverly Eaves Perdue
Governor
Division of Water Quality
Coleen H. Sullins
Director
November 10, 2011
MEMORANDUM
To:
Through:
From:
Debra Watts, The Central Office, APS
Jay Zimmerman
Lin McCartney
Dee Freeman
Secretary
Subject:
Well
Staff Report-WI0500445, Kyma Technologies, SQM Geothermal
Wake County
Aquifer Protection Section
1628 Mail Service Center, Raleigh, North Carolina 27699-1628
Location: 3800 Ba1Tetl Dr., Raleigh, North Carolina 27609
Phone: [phone] \ FAX: 9 I 9-571-4718 \ Customer Service: 1-877-623-6748
Internet: www.ncwaterquality.org
An Equal Opportunity\ Affirmative Action Employer
RE~EIVEO / DENR / OWQ
Aquifer Protection Section
NOV 15 2011
Nirth Carolina )Vaturally
AQUIFER PROTECTION REGIONAL STAFF REPORT
Date: November 9, 2011
To: Aq uifer Protection Central Office
Central Office Reviewer: Michael Ro gers
Regional Login No: __ _
I. GENERAL INFOR,-l-lA TION
1. This application is (check all that apply): t8J New D Renewal
County: \Vake
Permittee: Kyma Technolog ies
Project Name: SQ M In jection \Veil
Application No.: \VI0500445
D Minor Modification D Major Modification
D Surface Irrigation D Reu·se D Recycle D High Rate Infiltration D Evaporation/[nfiltration Lagoon
D Land Application of Residuals
D Distribution of Residuals
0 Attachment 8 included
D Surface Disposal
0 503 regulated O 503 exempt
D Closed-loop Groundwater Remediation t8J Other Injection Wells (including in sit11 remediation)
Was a site visit conducted in order to prepare this report? l:8J Yes or D No.
a. Date of site visit: 11-08-2011
b. Person contacted and contact information: Paul Penland, 9 l 9-304-4977 , 9 l 9-971-6024
c. Site visit conducted by: Lin McCartney
d. Inspection Report Attached: l:8J Yes or D No.
2. ls the following information entered into the B[MS record for this application correct?
l:8J Yes or D No. ff n_o, please complete the following or indicate that it is correct on the current application.
For Treatment Facilities:
a. Location:
b. Driving Directions: __
c. USGS Quadrangle Map name and number: __
d. Latitude: Longitude: __
e . Regulated Activities/ Type of Wastes (e.g., subdivision, food processing, municipal wastewater): __
For Dis posal and Injection Sites:
(If multi p le sites either indicate which sites the information a pp lies to . co py and p aste a new section into the
document for each site . or-attach additional pages for each site )
a. Location(s): 8829 Midway West Road . Ralei g h . NC 276 I 9
b . Driving Directions: Take US-70 W for 7 miles . take the Lumley Rd/ West gate Rd exit . EXIT 293 . toward
1-540/(-40 . tum sli ~ht rh~ht onto West gate Rd . turn left onto Midwa y West ..
c. USGS Quadrangle Map name and number: NI A
d. Latitude: 35-54-23 Longitude: 78-45-28
II. NEW AND 1l-lAJOR MODIFICATION APPLIC-l TIONS (tltis sectio111101 needed for re11e,vals or minor
111odi(icatio11s, skip to 11ext sec:tio11 )
Descri ption Of Waste (S) And Facilities
l . Please attach completed rating sheet. Facility Classitkation : __
FORM: Staff.Report-Kyma Technologies-5QM
RECEIVED/ DENR / DWQ
Aquifer ProtP.clion Section
NOV 15 2011
AQUIFER PROTECTION REGIONAL STAFF REPORT
IV. INJECTION WELL PERMIT APPL/CA T/ONS (Complete these two sections for all systems that use injection
wells, including closed-loop groundwater remediation effluent injection wells, in situ remediation injection wells, and heat
pump injection wells.)
Descri ption Of Well(S ) And Facilities -New , Renewal , And Modification
I. Type of injection system:
D Heating/cooling water return flow (5A 7)
[8J Closed-loop heat pump system (5QM/5QW)
D In situ remediation (51)
D Closed-loop groundwater remediation effluent injection (5L/"Non-Discharge")
D Other (Specify: )
2. Does system use same well for water source and injection? D Yes
3. Are there any potential pollution sources that may affect injection? D Yes
What is/are the pollution source(s)?
[8J No
[8J No
4. What is the minimum distance of proposed injection wells from the property boundary?
5. Quality of drainage at site: [8J Good D Adequate D Poor
6. Flooding potential of site: [8J Low D Moderate D High
7. For groundwater remediation systems, is the proposed and/or existing groundwater monitoring program
(number of wells, frequency of monitoring, monitoring parameters, etc.) adequate? D Yes D No. Attach
map of existing monitoring well network if applicable. If No, explain and recommend any changes to the
groundwater monitoring program: __
8. Does the map presented represent the actual site (property lines, wells, surface drainage)? [8J Yes or D No. ff
no or no map, please attach a sketch of the site. Show property boundaries, buildings, wells, potential pollution
sources, roads, approximate scale, and north arrow.
In jection Well Permit Renewal And Modification Only :
I. For heat pump systems, are there any abnormalities in heat pump or injection well operation (e.g. turbid water,
failure to assimilate injected fluid, poor heating/cooling)?
D Yes IZJ No. If ves , ex p lain:
2. For closed-loop heat pump systems, has system lost pressure or required make-up fluid since permit issuance
or last inspection? 0 Yes [8J No. If yes , ex plain:
J. For renewal or modification of g roundwater remediation pem1its (of an y typ e ). will
continued/additional/modified in jections have an adverse im pact on mi gration of the p lume or mana gement of
the contamination incident'? D Yes D No. If ves , ex plain:
4. Drilling contractor: Name: John Mike Mullis
F< >RM: Staff.Report-Kyma 'fl!chnologies-5QM ➔
AQUIFER PROTECTION REGIONAL STAFF REPORT
Address:
9200 S W face Hill Road . Charlotte. NC 28227
Certification number: 2038
5. Complete and attach Well Construction Data Sheet.
V. EVALUATION AND RECOMMENDATIONS
I. Provide any additional narrative regarding your review of the application.:
2. Attach Well Construction Data Sheet -if needed information is available
3. Do you foresee any problems with issuance/renewal of this permit? D Yes l:8J No. If yes, please explain
brietly. __ .
4. List any items that you would like APS Central Office to obtain through an additional information request.
Make sure that you provide a reason for each item:
Item Reason
5. List specific Permit conditions that you recommend to be removed from the permit when issued. Make sure
that you provide a reason for each condition :
Condition Reason
6. List specific special conditions or compliance schedules that you recommend to be included in the permit when
issued. Make sure that you provide a reason for each special condition:
Condition Reason
FORM : Staff.Rcport-Kyma Tcchnologics-5QM 5
AQUIFER PROTECTION REGIONAL STAFF REPORT
7. Recommendation: ❑ Hold, pending receipt and review of additional information by regional office; ❑ Hold,
pending review of draft permit by regional office; ❑ Issue upon receipt of needed additional information;
Issue; ❑ Deny. It -deny, please state reasons:
8. Signature of report preparer(s);
C
Signature of APS regional supervisor:
Date: )11 q'T.a'I
4DDITIONAL REGIONAL STIFF REVIEW ITEMS
A pre -permitting inspection was conducted on November 8, 2011.
18 borings were proposed to construct with depth of 335 feet. All wells will be constructed under
the ground behind the building. Borings will be vertically drilled.
A review of the construction data indicates that the proposal to construct the well meets the
injection well construction criteria in accordance with N.C. State Regulations (Title I5A NCAC
2C), Well Construction Standards.
The following items were checked:
All the wells will be 3 feet below the ground: well heads and horizontal connecting lines will be 3
feet below the ground.
Type of tubing: Polyethylene
Grout type: bentonite; grout depth: from 3 feet to 335 feet
Chemical additives to be used in closed -loop system: Ethanol
We recommend that the Central Office proceed to issue the applicant a permit for geothermal well
construction so that the contractor could start construction.
ILC e.1.4 44'4 L �L..LI•fJ4CG�{]'E� 1� „
A-e 44$s444,,e4‘ e dJP 1-4t- 4Qi LU7! au... -
a a 4-7fre axed
-14' f} a
'l +
FORM: Stuff Report-Kyrna Technologies-5QM 6

Permit: WI0500445
SOC:
County: Wake
Region: Raleigh
Effective:
Effective:
Contact Person: Heather A Splawn
Directions to Facility:
System Classifications:
Primary ORC:
Secondary ORC(s):
On-Site Representatlve(s):
Related Permits:
Inspection Date: 11/08/2011
Primary Inspector: Lin McCartney
Secondary lnspector(s):
Reason for Inspection: Routine
Compliance Inspection Report
Expiration:
Expiration:
Title:
Owner: Kyma Technologies
Facility: Kyma Technologies
8829 Midway W Rd
Raleigh NC 27619
Phone: [phone]
Certification: Phone:
Entry Time: 12:30 PM Exit Time: 01 :30 PM
Phone: [phone]
Ext.4243
Inspection Type: Compliance Evaluation
Permit Inspection Type: Injection Mixed Fluid GSHP Well System (SQM)
Facility Status: ■ Compliant O Not Compliant
Question Areas:
■other
(See attachment summary)
Page : 1
Permit: WI0500445
Inspection Data: 11/08/2011
Inspection Summary:
Owner -Facility: Kyma Technologies
Inspection Type: Compliance Evaluation
A pre-permitting inspection was conducted on November 8, 2011 .
Reason for Visit: Routine
18 borings were proposed to construct with depth of 335 feet. All wells will be constructed under the ground behind the
building. Borings will be vertically drilled.
A review of the construction data indicates that the proposal to construct the well meets the injection well construction
criteria in accordance with N.C. State Regulations (Title 15A NCAC 2C), Well Construction Standards.
The following items were checked:
All the wells will be 3 feet below the ground: well heads and horizontal connectirig lines will be 3 feet below the ground.
Type of tubing: Polyethylene
Grout type: Bentonite; Grout depth 3 feet to 335 feet
Chemical additives to be used in closed-loop system: Ethanol
We recommend that the central Office proceed to issue the applicant a permit for geothermal well construction so that the
contractor could start construction.
Other
Comment:
Yea No NA NE
Page: 2