----

| 1/1/2011 - 12/31/2011 |  $     65,655.08* |
|-----------------------|-------------------------------------------------|
| 1/1/2012 - 12/31/2012 |  $   135,249.45             |
| 1/1/2013 - 12/31/2013 |  $   139,306.94             |
| 1/1/2014 - 12/31/2014 |  $   143,486.15             |
| 1/1/2015 - 12/31/2015 |  $   147,790.73             |
| 1/1/2016 - 12/31/2016 |  $   152,224.45             |
| 1/1/2017 - 1/31/2017  |  $   156,791.19             |

| 1/1/2011 - 12/31/2011 |  $        5,471.26 |
|-----------------------|-----------------------------------------------------------------|
| 1/1/2012 - 12/31/2012 |  $     11,270.79                  |
| 1/1/2013 - 12/31/2013 |  $     11,608.91                  |
| 1/1/2014 - 12/31/2014 |  $     11,957.18                  |
| 1/1/2015 - 12/31/2015 |  $     12,315.89                  |
| 1/1/2016 - 12/31/2016 |  $     12,685.37                  |
| 1/1/2017 - 1/31/2017  |  $     13,065.93                  |

| (a)   | During the Extended Term, Tenant shall, at its own cost and expense, maintain the Premises in good condition, including interior janitorial services, regularly serving and promptly making all repairs and replacements thereto, including but not limited to the electrical systems (including light bulb replacement), plate glass, floors, windows and doors, and sprinkler and plumbing systems. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | In addition, during the initial lease year of Extended Term, Tenant shall pay for the service and maintenance contract on the building standard HVAC system (the “HVAC System”) servicing the Premises in accordance with the contract attached hereto as Exhibit A.  Each subsequent year of the Extended Term, Tenant’s obligation for payment of the service and maintenance contract on the HVAC System servicing the Premises shall increase by an amount not to exceed three percent (3%) of the prior year’s cost of service and maintenance of the HVAC System.  Landlord shall maintain the HVAC System pursuant to Exhibit B attached hereto and made a part hereof.  Tenant shall pay all invoices for maintenance and repairs to the HVAC System within thirty (30) days of receipt of an invoice therefore from Landlord.” |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (a)   | The reference in Section 17.08(b) to “$5,000.00” shall be deleted and replaced with “$3,800.00”. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| (b)   | The following provision shall be added at the end of Section 17.08(c) of the Lease: |
|-----------------|-------------------------------------------------------------------------------------|

| (c)   | Upon execution of this Third Amendment, Landlord shall, at Landlord’s expense, promptly repair the HVAC in accordance with the bid, attached hereto as Exhibit C; provided, however, in no event shall Landlord’s total repair costs exceed $5,830.00. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|    Commercial Preventative                                                                                                                                                                                                                                                                                                                                                                                       |                                        |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------|
|    Maintenance Agreement                                                                                                                                                                                                                                                                                                                                                                                         |                                        |
| Company:                                                                                                                                                                                                                                                                                                                                                                                                                        | Charles and Colvard                         |   | Proposed To: | Lutz Realty |
| Mailing Address:                                                                                                                                                                                                                                                                                                                                                                                                                |                                        | Service Address: |
| 300 Perimiter Park Drive  Suite A                                                                                                                                                                                                                                                                                                                                                                                     | 200 Perimiter Park Drive  Suite A |
| Morrisville, NC 27560                                                                                                                                                                                                                                                                                                                                                                                                           | E-Mail :  palachi@lutzco.com      |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |                                        | Attn:  Pam Alachi |
| Phone: 919-469-9040                                                                                                                                                                                                                                                                                                                                                                                                             |                                        | Fax: 919-469-9025 |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |                                        |   |   |   |   |   |   |
|  We will provide you with a qualified service technician to clean and tune-up your heating and                                                                                                                                                                                                                                                                                                                             |
|  air conditioning equipment.  Maintenance will be scheduled on the following circled months.                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |                                        |   |   |   |   |   |   |
|  Jan      Feb     Mar      Apr      May     Jun     Jul      Aug     Sept      Oct      Nov      Dec |                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |                                        |   |   |   |   |   |   |
|  Your annual investment in this professional service is:                                                                                                                                                                                                                                                                                                                                                                   | $2,240.00                                   |   |
| Balance due in quarterly payments of                                                                                                                                                                                                                                                                                                                                                                                            | $560.00                                     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |                                        |   |   |   |   |   |   |
|  Your tune-ups will be performed_____4_____times per year, during regular service                                                                                                                                                                                                                                                                                                                                          |                                        |
|  hours, 7:00am-5:00pm, Monday through Friday.                                                                                                                                                                                                                                                                                                                                                                              |                                        |   |   |   |   |
|  In the event of an operational failure, additional service and/or repairs will be                                                                                                                                                                                                                                                                                                                                         |                                        |   |
|  provided at a discount of 10% below our standard rate on parts and labor.  This                                                                                                                                                                                                                                                                                                                                 |                                        |
|  discounted rate does not apply to the replacement of equipment or accessories.                                                                                                                                                                                                                                                                                                                                            |                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |                                        |   |   |   |   |   |   |
| Equipment Type                                                                                                                                                                                                                                                                                                                                                                                                                  | Brand                                       |   | Model # |   | Serial # |   |
| 3 TON GAS PACK (300)                                                                                                                                                                                                                                                                                                                                                                                                            | CARRIER                                     | 48TFE004A611 | 1004G30451 |
| 7.5 TON GAS PACK (301)                                                                                                                                                                                                                                                                                                                                                                                                          | CARRIER                                     | 48LD008500DA | 0686G97628 |
| GAS PACK (302)                                                                                                                                                                                                                                                                                                                                                                                                                  | CARRIER                                     | N/A | N/A |
| GAS PACK (303)                                                                                                                                                                                                                                                                                                                                                                                                                  | MCQUAY                                      | PGDA060H073W1XS | 4ANH23G000 |
| GAS PACK (304)                                                                                                                                                                                                                                                                                                                                                                                                                  | CARRIER                                     | PGDA060H073W1XS | 4WH23G000N30 |
| 5 TON GAS PACK (305)                                                                                                                                                                                                                                                                                                                                                                                                            | CARRIER                                     | 48LDT006510 | 4885G81176 |
| 7.5 TON GAS PACK (306)                                                                                                                                                                                                                                                                                                                                                                                                          | CARRIER                                     | 48LD008500DA | 4985G87371 |
| PACKAGE UNIT (307)                                                                                                                                                                                                                                                                                                                                                                                                              | CARRIER                                     | N/A | N/A |
| 5 TON GAS PACK (308)                                                                                                                                                                                                                                                                                                                                                                                                            | CARRIER                                     | 48LDT006510 | 488G581172 |
| 5 TON GAS PACK (312)                                                                                                                                                                                                                                                                                                                                                                                                            | CARRIER                                     | 48TFE006A511 | 2402G50376 |
| (3) EXHAUST FANS                                                                                                                                                                                                                                                                                                                                                                                                                |                                        |   | 1 INSPECTION PER YEAR |
| Split system                                                                                                                                                                                                                                                                                                                                                                                                                    | Trane                                       | 2TTR1024A1000AA | 4425LS25F |
| Shumate Representative                                                                                                                                                                                                                                                                                                                                                                                                          |                                        |   | Customer |   |   |   |
| Signature                                                                                                                                                                                                                                                                                                                                                                                                                       | Jay Honeycutt                               |   | Signature |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |                                        |   |   |   |   |   |   |
| Name(printed)                                                                                                                                                                                                                                                                                                                                                                                                                   | Jay Honeycutt                               |   | Name(printed) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |                                        |   |   |   |   |   |   |

----

| Date                         | 1/17/2011                                              |                                                                              | Date                       |   |                         |   |
|------------------------------|--------------------------------------------------------|-----------------------------------------------------------------------------------|----------------------------|--------|------------------------------|--------|
| Effective Start Date         | 2/1/2011                                               |                                                                              |                       |   |                         |   |
|                         |                                                   |                                                                              |                       |   |                         |   |   |
| {Logo of Shumate Mechanical} |                                                   |                                                                              |                       |   | ***We Reserve The Right To   |
|                         |                                                   |                                                                              |                       |   | Withdraw This Agreement If   |
|                         |                                                   |                                                                              |                       |   | Not Accepted Within 60 Days. |
|  5201 Old Poole RD      |       Phone 919-662-8040 | See Terms and Conditions                                                          |
| Suite 110                    |                                                   |       Fax     919-662-8483 | Of Agreement on Page 2.*** |
| Raleigh, NC 27610            |                                                   |                                                                              |                       |   |                         |   |
|                         |                                                   |                                                                              |                       |   |                         |   |   |

----

| ·   | Filter replacement |
|--------------------|--------------------|

| ·   | Inspect drain pans and lines |
|--------------------|------------------------------|

| ·   | Inspect coils (Evaporator & Condenser) |
|--------------------|--------------------------------------------|

| ·   | Inspect Belts and Bearings |
|--------------------|----------------------------|

| ·   | Inspect Motor Mounts and Brackets |
|--------------------|-----------------------------------|

| ·   | Refrigerant pressure |
|--------------------|----------------------|

| ·   | Electrical connections |
|--------------------|------------------------|

| ·   | Perform any needed repairs to prevent malfunction or breakdown |
|--------------------|----------------------------------------------------------------|

| ·   | Chemically clean the evaporator and condenser coils pursuant to the manufacturer’s specifications |
|--------------------|---------------------------------------------------------------------------------------------------------|

| ·   | Clean and drain pans and drain lines |
|--------------------|--------------------------------------|

| ·   | Install time releasing Flow Plus Drain Tablets |
|--------------------|------------------------------------------------|

| ·   | Replace all belts pursuant to the manufacturer’s specifications |
|--------------------|-----------------------------------------------------------------------|

| ·   | Oil all motors and tighten motor mounts and brackets |
|--------------------|------------------------------------------------------|

| ·   | Tighten all electrical connection and check voltage |
|--------------------|-----------------------------------------------------|

| ·   | Check refrigeration pressures |
|--------------------|-------------------------------|

| ·   | Check Temperature Control |
|--------------------|---------------------------|

| ·   | Inspect Heating components (if applicable) |
|--------------------|--------------------------------------------|

| ·   | Inspect ductwork and make repairs and adjustments |
|--------------------|---------------------------------------------------|

| ·   | Perform any needed repairs to prevent malfunction or breakdown |
|--------------------|----------------------------------------------------------------|

----

|                                               |   |                                        |   |                                                                                                           |   |                                                                            |
|----------------------------------------------------|--------|---------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|
| Shumate Mechanical-Raleigh, Inc.                   |   |                                        |   |
| Existing Buildings Division                        |   |                                        |   |                                                                                                           |
| 5201 Old Poole Road, Suite 110                     |   |                                        |   |                                                                                                           |
| Raleigh, NC 27610                                  |   |                                        |   | Prepared by Jay Honeycutt                                                                                      |
| Tel 919-662-8040   Fax 919-662-8483 |   |                                        |
| N.C. HVAC License # 27546                          |   |                                        |   |                                                                                                           |
|                                               |   |                                        |   |                                                                                                           |   |                                                                            |
| Date:                                              |   | 10-Jan-11                                   |   |                                                                                                           |   |                                                                            |
| Job Name:                                          |   | Charles And Covard                          |   |                                                                                                           |   |                                                                            |
| Address:                                           |   | 300 Perimeter Park Drive Suite A            |   |                                                                                                           |
|                                               |   | Morrisville NC 27560                        |   |                                                                                                           |   |
|                                               |   |                                        |   |                                                                                                           |   |                                                                            |
| Customer:                                          |   | Lutz Real Estate Investments                |   |                                                                                                           |
| Attention:                                         |   | Pam Alachi                                  |   |                                                                                                           |   |                                                                            |
| Address:                                           |   | 200 Perimeter Park Drive Suite A            |   |                                                                                                           |
|                                               |   | Morrisville NC 27560                        |   |                                                                                                           |   |
| Phone:                                             |   | 919-469-9040                                |   |                                                                                                           |   |                                                                            |
| Fax:                                               |   | 919-469-9025                                |   |                                                                                                           |   |                                                                            |
| Email:                                             |   | palachi@lutzco.com                          |   |                                                                                                           |   |                                                                            |
|                                               |   | Budgetary HVAC Repair and Replacement Costs |   |                                                                                                           |
|                                               |   |                                        |   |                                                                                                           |   |                                                                            |
|                                               |   |                                        |   | Model #     Serial #                                                                  |   | Repair                                                                          |
| Unit #                                             |   | Unit Type                                   |   | Required Repairs                                                                                               |   | Costs                                                                           |
| # 1 Split                                          |   | Trane C/U                                   |   | Model # 2TTR1024A1000AA Serial # 4425LS25F (MFG Date 2004)                                                     |   |                                                                            |
| 2 Ton                                              |   | Trane A/H                                   |   | Model # TWE024C1AFB0 Serial # 4315MLC2V (MFG Date 2004)                                                        |   |                                                                            |
|                                               |   |                                        |   | Unit is in fair condition.                                                                                     |   |                                                                            |
|                                               |   |                                        |   |                                                                                                           |   |                                                                            |
| RTU 300                                            |   | Carrier                                     |   | Model # 48TFE004-A-611 Serial # 1004G30451 (MFG Date 2004)                                                     |   |                                                                            |
| 3 Ton                                              |   |                                        |   | Unit is in fair condition.                                                                                     |   |                                                                            |
|                                               |   |                                        |   |                                                                                                           |   |                                                                            |
| RTU 301                                            |   | Carrier                                     |   | Model # 48LD008 500 Serial # 0686G97628 (MFG Date 1986)                                                        |   |
| 7.5 Ton                                            |   |                                        |   | Unit is in fair condition for the age. Needs economizer filters                                                |   |  $           116.00 |
|                                               |   |                                        |   |                                                                                                           |   |                                                                            |
| RTU 302                                            |   | Carrier                                     |   | Model # Can't Read       Serial # Can't Read  (MFG Date mid 80's) |   |                                                                            |
|                                               |   |                                        |   | Unit is in fair condition for the age.                                                                         |   |                                                                            |
|                                               |   |                                        |   |                                                                                                           |   |                                                                            |
| RTU 303                                            |   | Snyder General                              |   | Model # PGDA060H075  Serial # 4ANH73G000-N30-0002  (MFG Date mid 80's)                     |   |                                                                            |
| 5 Ton                                              |   |                                        |   | Burners are very dirty and need to be cleaned for proper operation                                             |   |  $           150.00 |
|                                               |   |                                        |   |                                                                                                           |   |                                                                            |
| RTU 304                                            |   | Snyder General                              |   | Model # PGDA060H075  Serial # 4ANH73G000-N30-0003  (MFG Date mid 80's)                     |   |                                                                            |
| 5 Ton                                              |   |                                        |   | Burners are very dirty and need to be cleaned for proper operation                                             |   |  $           150.00 |
|                                               |   |                                        |   | Flame is rolling back and locking out. This may be due to dirty                                                |   |                                                                            |
|                                               |   |                                        |   | burners or heat exchanger bay be bad. Once the burners are                                                     |   |                                                                            |
|                                               |   |                                        |   | cleaned we will be able to confirm.                                                                            |   |                                                                            |

----

|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|
| RTU 305                                                                                                                                                                                                                                                                                                                                                                           |   | Carrier |   | Model # 48LDT006 510 Serial # 4885G81176 (MFG Date 1985)                                                       |   |                                                                            |
| 5 Ton                                                                                                                                                                                                                                                                                                                                                                             |   |    |   | Heat exchanger is bad & needs to be replaced.                                                              |   |  $        1,777.00                 |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
| RTU 306                                                                                                                                                                                                                                                                                                                                                                           |   | Carrier |   | Model # 48LD008 500 Serial # 4985G87371 (MFG Date 1986)                                                        |   |                                                                            |
| 7.5 Ton                                                                                                                                                                                                                                                                                                                                                                           |   |    |   | Heat exchanger is bad & needs to be replaced.                                                              |   |                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   | Also has a bad condenser fan motor that needs to be replaced.                                                  |   |  $        2,993.00                 |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
| RTU 307                                                                                                                                                                                                                                                                                                                                                                           |   | Carrier |   | Model # Can't Read       Serial # Can't Read  (MFG Date mid 80's) |   |                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   | Unit is in fair condition for the age.                                                                         |   |                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
| RTU 308                                                                                                                                                                                                                                                                                                                                                                           |   | Carrier |   | Model # 48LDT006 510 Serial # 4885G81172 (MFG Date 1985)                                                       |   |                                                                            |
| 5 Ton                                                                                                                                                                                                                                                                                                                                                                             |   |    |   | Exhaust flue collector box and inducer assembly are                                                            |   |                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   | rusted out and needs to be replaced                                                                            |   |  $           644.00 |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
| RTU 312                                                                                                                                                                                                                                                                                                                                                                           |   | Carrier |   | Model # 48TFE006 A 511 Serial # 2402G50376 (MFG Date 2002)                                                     |   |                                                                            |
| 5 Ton                                                                                                                                                                                                                                                                                                                                                                             |   |    |   | Unit is in fair condition.                                                                                     |   |                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
| Please feel free to call me if you have any questions.                                                                                                                                                                                                                                                                                                                            |   |    |
| Thank you,                                                                                                                                                                                                                                                                                                                                                                        |   |    |   |                                                                                                           |   |
| Jay Honeycutt                                                                                                                                                                                                                                                                                                                                                                     |   |    |   |                                                                                                           |
| Commercial Service Manager                                                                                                                                                                                                                                                                                                                                                        |   |    |   |                                                                                                           |
| Shumate Mechanical-Raleigh, Inc.                                                                                                                                                                                                                                                                                                                                                  |   |    |   |
| 919-662-8040 office                                                                                                                                                                                                                                                                                                                                                               |   |    |   |                                                                                                           |
| 919-625-3359 cell                                                                                                                                                                                                                                                                                                                                                                 |   |    |   |                                                                                                           |
| jhoneycutt@shumatemech.com                                                                                                                                                                                                                                                                                                                                                        |   |    |   |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
| Sellers Signature:   Jay Honeycutt        Buyers Signature:_______________________                                                                                                                                                                                                                                         |   |    |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
| Date:         1-10-11                                            Date:__________________________________ |   |    |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
| Sellers Name:   Jay Honeycutt                        Buyers Name:__________________________                                                                                                                                                |   |    |
|                                                                                                                                                                                                                                                                                                                                                                              |   |    |   |                                                                                                           |   |                                                                            |
| All prices are good for a period of thirty days from date of proposal unless noted above.                                                                                                                                                                                                                                                                                         |   |    |