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Exhibit 10.20
 
FIRST AMENDMENT TO LEASE
 
THIS FIRST AMENDMENT TO LEASE (“First Amendment”) made as of the 23rd day of
December, 2013, by and between Southport Business Park Limited Partnership, a
North Carolina limited partnership (the “Landlord”) and Charles & Colvard, LTD.,
a North Carolina corporation (the “Tenant”).

WITNESSETH:

WHEREAS, Landlord and Tenant entered into a certain lease (“Lease”) dated as of
December 9th, 2013 (the “Lease”), for certain premises located at 170 Southport
Drive, Morrisville, Wake County, North Carolina (the “Demised Premises”), the
Demised Premises being more particularly described in the Lease; and

WHEREAS, Landlord and Tenant desire to modify the terms of the Lease to change
the dates of the Lease and the rent schedule; among other things;

NOW THEREFORE, in consideration of the premises contained herein, the sum of Ten
Dollars ($10.00) and other good and valuable consideration, the mutual receipt
and sufficiency of which is hereby acknowledged, the parties agree to amend the
Lease as follows:

1. Page Two and Three:  Section 1.02 — TERM OF THE LEASE

In the first paragraph delete “August 31, 2021” and insert the following in its
place:

“the last day of the 89th full calendar month following the Commencement Date
(the “Expiration Date”),”

In the second paragraph delete “April 1, 2014” and insert the “April 15, 2014”
in its place.

2. Page Three and Four:  Section 1.04. RENT AND ADJUSTMENTS TO RENT

 
Delete the "Minimum Rent Chart" shown under the first paragraph and insert the
following in its place:

Lease Year
 
Annual
Minimum Rent
   
Monthly
Minimum Rent
   
Annual Minimum
Rent Per Rentable
Square Foot
 
Lease Year 1
 
$
545,160.00
   
$
45,430.00
   
$
15.00
 
Commencement Date through first 12 full months
                       
Lease Year 2
 
$
560,151.90
   
$
46,679.33
   
$
15.41
 
Months 13 through 24
                       
Lease Year 3
 
$
575,556.08
   
$
47,963.01
   
$
15.84
 
Months 25 through 36
                       
Lease Year 4
 
$
591,383.87
   
$
49,281.99
   
$
16.27
 
Months 37 through 48
                       
Lease Year 5
 
$
607,646.93
   
$
50,637.24
   
$
16.72
 
Months 49 through 60
                       
Lease Year 6
 
$
624,357.22
   
$
52,029.77
   
$
17.18
 
Months 61 through 72
                       
Lease Year 7
 
$
641,527.04
   
$
53,460.59
   
$
17.65
 
Months 73 through 84
                       
Partial Year
   
N/
A
 
$
54,930.75
     
N/
A
Months 85 through 89
                       

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3. Page Five — SECTION 1.05 — RENT ABATEMENT  Delete this section in its
entirety and insert the following in its place:

 
Notwithstanding what is shown on the Minimum Rent Chart, no Monthly Minimum Rent
shall be due for the following months (the "Abatement Months"): the first seven
(7) full months following the Commencement Date.

4. Tenant warrants that it has had no dealings with any broker or agent in
connection with this First Amendment, other than Aldene "Dee" Creech Osborne,
SIOR of NAI Carolantic Realty and Matthew Cooke of Jones Lang LaSalle Brokerage,
Inc., and covenants to pay, hold harmless and indemnify Landlord from and
against, any and all cost, expense or liability for any compensation,
commissions and charges claimed by any other broker or agent with respect to
this First Amendment or the negotiation thereof.

Except as herein amended, the terms and conditions of said Lease shall remain in
full force and effect. Each person signing as Landlord or Tenant warrants and
represents that she or he is authorized to execute and deliver this First
Amendment and to make it a binding obligation of Landlord or Tenant.

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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed the date and year first above written.

 
LANDLORD:
 
 
 
SOUTHPORT BUSINESS PARK LIMITED
PARTNERSHIP, a North Carolina limited
partnership
 
 
 
 
By:
SOUTHPORT BUSINESS PARK
 
INVESTORS CORPORATION, a North Carolina
corporation, its general partner
 
 
 
 
BY:
/s/ Richard G. Sullivan
 
 
Richard G. Sullivan
 
 
Vice President
 
 
 
 
TENANT:
 
CHARLES & COLVARD, LTD, a North
Carolina corporation
 
 
 
 
By:
/s/ Randy McCullough
 
 
Randy McCullough
 
 
President & CEO

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EXHIBIT A - ACCEPTANCE OF DEMISED PREMISES AND EXPIRATION DATE MEMORANDUM

ACCEPTANCE OF DEMISED PREMISES
AND EXPIRATION DATE MEMORANDUM

DATE:
 
TO:
Randy McCullough
 
President & CEO
 
Charles & Colvard, Ltd.
 
FROM:
Stephanie Mesnard
 
General Manager
 
Southport Business Park
 
SUBJECT:
Commencement Date/Expiration Date

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This is to record your official Commencement Date of ________, for the Lease
dated ________. Per Section 1.02 - Term of the Lease, Landlord and Tenant each
agrees to sign a statement confirming the actual date on which the term begins
as soon as it is determined and a confirmation of the Expiration Date. In
accordance with the Lease dated ________, this shall serve as a signed statement
confirming the actual Commencement Date as ________ and the Expiration Date as
________.
 
 /s/ Randy McCullough
 
 
Randy McCullough
 
Date
President & CEO
 
 
Charles & Colvard, Ltd.
 
 
 
 
 
 
 
 
Stephanie Mesnard
 
Date
General Manager
 
 
Southport Business Park
 
 

 
 
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