EXHIBIT 10.41


     THE REGISTRANT HAS REQUESTED THAT CERTAIN PORTIONS OF THIS EXHIBIT BE
GIVEN CONFIDENTIAL TREATMENT. SUCH PORTIONS HAVE BEEN FILED SEPARATELY WITH THE
                                  COMMISSION.


                              CHARLES & COLVARD(TM)
                        ------------CREATED-------------
                              M O I S S A N I T E



                                LETTER AGREEMENT

THIS LETTER AGREEMENT ("Agreement") is entered into March 15, 2000 between C3,
INC., d/b/a Charles & Colvard, 3800 Gateway Boulevard, Suite 311, Morrisville,
North Carolina 27560 ("C&C"), and The Bell Group, d/b/a Rio Grande, 7500
Bluewater Road, NW, Albuquerque, New Mexico 87121-1962 ("Rio Grande").

                                    RECITALS

C&C is engaged in the business of designing, manufacturing, marketing, and
selling finished created jewels made of silicon carbide known as Charles &
Colvard created moissanite jewels ("Moissanite") and certain pieces of jewelry
containing Moissanite. Rio Grande is engaged in the business of manufacturing,
marketing and selling jewelry, jewelry findings, supplies, and gemstones. The
parties wish to enter into a business relationship whereby Rio Grande will
purchase Moissanite from C&C, in exchange for distribution rights to sell
Moissanite on the terms set out herein.

Now, therefore, in consideration of the mutual terms set forth herein, the
parties hereby agree as follows:

1.   APPOINTMENT. Subject to the terms of this Agreement, C&C hereby appoints
     Rio Grande as a nonexclusive distributor of Moissanite to all classes of
     trade in the United States of America, Canada, Mexico and the Caribbean
     ("Territory") during the term of this Agreement. Notwithstanding such
     appointment, Rio Grande acknowledges and agrees that the parties shall
     honor C&C's existing agreements pursuant to their terms.

2.   LIMITATIONS. Rio Grande shall not solicit sales of Moissanite, sell
     Moissanite or otherwise represent C&C in any geographic area other than the
     Territory, or solicit sales or sell Moissanite directly to consumers.

3.   TERM. Subject to earlier termination pursuant to Section 10 of this
     Agreement, the term of this Agreement shall commence as of the date of this
     Agreement and terminate on December 31, 2001. This Agreement shall
     automatically be renewed for successive additional one-year terms unless
     either party gives notice to the other party of intent to terminate this
     Agreement at least 90 days prior to the end of the then current term.

4.   BRAND DEVELOPMENT. C&C shall be responsible for developing, maintaining and
     delivering the Moissanite brand image to consumers. Rio Grande agrees to
     support the C&C brand development efforts as set out in Section 6.

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<PAGE>
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5.   TRADEMARKS. C&C and Rio Grande shall enter into the Licensing Agreement
     attached as Exhibit A which provides Rio Grande during the term of this
     Agreement with the non-exclusive, royalty-free right and license to use the
     C&C trademarks solely for the purpose of marketing, advertising, promoting,
     and selling Moissanite in the Territory.

6.   MARKETING, ADVERTISING AND PROMOTION. Rio Grande shall use its best efforts
     to market, promote, distribute, and sell Moissanite in the Territory as a
     unique new jewel and shall use its best efforts to recruit independent
     retail jewelers in the Territory to purchase Moissanite. Rio Grande shall
     be responsible for advertising and promotion to the jewelry trade. Rio
     Grande shall encourage the retail jewelers that carry Moissanite to
     advertise Moissanite to consumers. Rio Grande has specifically committed to
     the marketing, advertising and promotional activities set out on Schedule 6
     hereto for the year 2000. No less than 90 days prior to the end of the then
     current term, the parties shall mutually agree in writing on a proposed
     marketing, advertising and promotional plan for the succeeding annual term.
     Rio Grande agrees that it shall sell Moissanite only as "Charles & Colvard
     created Moissanite jewels" and in compliance with the C&C Brand Identity
     Guidelines, as may be amended by C&C from time to time. Rio Grande shall
     only make such representations or warranties with respect to Moissanite in
     marketing, advertising or promotional materials, or otherwise, as
     specifically approved and authorized by C&C in writing. Rio Grande shall
     comply with all applicable laws and regulations during the course of its
     performance of this Agreement and shall not sell Moissanite to any customer
     whom it knows or has reason to know intends to misrepresent Moissanite. C&C
     shall contribute to the marketing, advertising and promotion of Moissanite
     in the Territory in the form of a credit toward future purchases of
     Moissanite by Rio Grande from C&C. Credits shall be deemed earned quarterly
     upon receipt by C&C of a quarterly report from Rio Grande showing Rio
     Grande's compliance with the agreed upon plan. The amount of the credit
     granted by C&C to Rio Grande shall be ***** percent (*****%) of the net
     receipts of Rio Grande's purchases of Moissanite from C&C in the prior
     quarter.

7.   TRAINING. Within 30 days of the date of this Agreement, Rio Grande shall
     provide to its staff formal training with respect to Moissanite as
     described in Schedule 7.

8.   AVAILABILITY AND PRICING. C&C agrees to use commercially reasonable efforts
     to supply such Moissanite as requested by Rio Grande to Rio Grande. Rio
     Grande agrees to purchase as many carats of Moissanite as it may require
     from C&C using the pricing and minimum order requirements set forth in
     Schedule 8. Moissanite will be cut in available shapes per C&C's standard
     production practices and will range in size from 2.0 mm to 9.5 mm, with the
     average size 5.5 mm. The grade of Moissanite initially available shall be
     "Very Good" which includes possible slight color saturations. There will be
     no inclusions that are visible to the naked eye sold in this grade. Other
     Moissanite cuts and grades may be made available from time to time at C&C's
     discretion. C&C reserves the right to amend at any time the pricing and
     minimum order requirements set forth in Schedule 8, provided that if the
     pricing of Moissanite is decreased, C&C shall provide Rio Grande with a
     credit toward additional purchases of Moissanite equal to the amount of
     such price decrease on the lesser of (a) Rio Grande's net purchased
     Moissanite during the prior 90 days or (b) Rio Grande's actual inventory at
     such time.

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                         AND IS DENOTED HEREIN BY *****

9.   TERMS. Except as otherwise provided herein, the terms of delivery hereunder
     shall be FOB C&C's warehouse, and Rio Grande will provide all shipping and
     insurance fees for the Moissanite. C&C agrees to ship the Moissanite by
     whatever carrier Rio Grande designates, offering any carrier discounts that
     C&C has available to it. C&C shall invoice Rio Grande upon shipment with
     payment required in 30 days. Prices contained herein do not include any
     taxes, and Rio Grande shall be solely responsible for collecting,
     reporting, and/or paying all income (other than United States and North
     Carolina income taxes imposed on C&C), sales, excise, property, value-added
     tax, duty or tariff imposed by any governmental authority arising from the
     performance of either party under this Agreement.

10.  TERMINATION. Upon the failure of a party to fulfill a material term of this
     Agreement, or to cure a failure to fulfill any term of this Agreement
     within 30 days of written notice of such failure by the other party, the
     nondefaulting party may immediately terminate this Agreement by notice to
     the defaulting party. Either party may terminate this Agreement immediately
     by notice to the non-terminating party in the event that the
     non-terminating party enters or is placed in bankruptcy, receivership, or
     liquidation, becomes insolvent, or makes an assignment for the benefit of
     its creditors.

11.  EFFECT OF TERMINATION. Upon termination of this Agreement, Rio Grande's
     rights under this Agreement shall immediately terminate, and Rio Grande
     shall immediately cease marketing, promoting, distributing, or selling
     Moissanite (other than as may be allowed herein to dispose of inventory),
     and otherwise representing in any manner that Rio Grande is authorized to
     distribute Moissanite. Upon the termination of this Agreement for any
     reason, C&C shall, at its option, (i) repurchase Rio Grande's inventory of
     Moissanite at the price paid to C&C by Rio Grande for such products, less a
     reasonable restocking charge; or (ii) permit Rio Grande to sell such
     inventory; provided, that Rio Grande must complete all such distribution
     and sales of Moissanite within six (6) months of the termination date and
     fully perform all its obligations required by this Agreement. Termination
     of this Agreement shall not relieve either party from its duty to discharge
     in full all obligations accrued or due prior to the effective date of
     termination. Furthermore, the provisions of Sections 5, 6, and 11 through
     23 shall survive any termination of this Agreement. Neither party to this
     Agreement shall be liable to the other party by reason of the valid
     termination of this Agreement, for compensation, reimbursement, or damages
     on account of any loss of goodwill, anticipated sales, or prospective
     profits, or on account of expenditures, investments, or other commitments
     relating to the performance of this Agreement or the business of either
     party. The foregoing provision shall not be construed to limit the
     liability of either party for a default in the performance of any provision
     or obligation under this Agreement of the other party, which results in the
     nondefaulting party's election to terminate this Agreement in accordance
     with Section 10 above.

12.  DISCLAIMER OF WARRANTY. Other than as may be set out in writing to Rio
     Grande by C&C from time to time, C&C makes no warranty or other
     representation concerning Moissanite; and, other than as specifically
     provided in this Agreement, C&C's liability is limited to replacement of
     any Moissanite not conforming

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   REDACTED - OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION
                         AND IS DENOTED HEREIN BY *****

     to the specifications set out in Section 8 of this Agreement upon its
     return to C&C in compliance with the then existing standard policy of C&C
     governing returned goods. Rio Grande reserves the right to return any
     product not conforming to the specifications set out herein to C&C. The
     warranty set forth in this Section 12 is intended solely for the benefit of
     Rio Grande. All claims hereunder shall be made by Rio Grande and may not be
     made directly by Rio Grande's customers to C&C. The warranty set forth
     above is in lieu of all other warranties, expressed or implied, which are
     hereby disclaimed and excluded by C&C, including, without limitation, any
     warranty of merchantability or fitness for a particular purpose or use.

13.  INDEMNIFICATION. Rio Grande shall defend, indemnify, and hold harmless C&C
     and its officers, directors, agents and employees from and against any and
     all claims, causes of action, damages, losses, costs, and expenses
     (including reasonable attorneys' fees), judgments and liabilities made
     against or incurred by C&C arising out of the acts or omissions of Rio
     Grande, its employees and agents in the performance of this Agreement. C&C
     shall defend, indemnify, and hold harmless Rio Grande and its officers,
     directors, agents and employees from and against any and all claims, causes
     of action, damages, losses, costs, and expenses (including reasonable
     attorneys' fees), judgments and liabilities made against or incurred by Rio
     Grande arising out of the acts or omissions of C&C, its employees and
     agents in the performance of this Agreement, specifically including any
     claims from C&C's existing customers to territorial exclusivity arising
     from their current relationship with C&C.

14.  CONFIDENTIALITY. Each of Rio Grande and C&C shall treat the terms of this
     Agreement as confidential and shall not disclose such terms to any third
     party for any purpose without the prior written consent of the other party
     or as required by applicable law.

15.  INSURANCE. Throughout the term of this Agreement, Rio Grande shall maintain
     general liability and property damage liability insurance coverage
     underwritten by a Best-A rated insurance carrier in a minimum amount of $1
     million. Such policy shall name C&C as an additional insured and loss
     payee, and shall include a provision requiring the carrier to notify C&C in
     writing at least thirty (30) days prior to any cancellation, termination or
     amendment of such insurance coverage. Rio Grande shall deliver to C&C a
     certificate of insurance verifying the foregoing insurance coverage.

16.  EVENTS BEYOND PARTY'S CONTROL. Neither party shall be liable to the other
     party for delay or failure of performance of this Agreement if the delay or
     failure is caused by acts of God or events completely beyond the control of
     the parties. If a delay or failure of performance caused by force majeure
     shall continue for a period of more than six (6) months, either party shall
     have the right to terminate this Agreement by written notice to the other
     party.

17.  LIMITATION OF LIABILITY. C&C shall not be liable in contract, in tort
     (including negligence or strict liability) or otherwise for damage or loss
     of property, loss of profits or revenue, loss of use of property, cost of
     capital, claims of customers of Rio Grande or for any special, indirect,
     incidental, or consequential damages whatsoever. The remedies of Rio Grande
     set forth herein are exclusive and the total cumulative liability of C&C
     with respect to this agreement, or action taken or inaction in connection
     herewith such as the performance or breach thereof, or from the
     manufacture, sale, delivery, resale, or use of any product covered by or
     furnished under this Agreement, whether in contract, in tort (including
     negligence or strict liability) or otherwise, shall not exceed the price of
     the product on which such liability is based.

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   REDACTED - OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION
                         AND IS DENOTED HEREIN BY *****

     No action, regardless of form, arising out of the transactions under this
     Agreement may be brought by Rio Grande more than one (1) year after the
     cause of action has accrued.

18.  RELATIONSHIP OF PARTIES. This Agreement does not establish a joint venture
     or legal partnership between the parties. Rio Grande is and shall be an
     independent contractor and shall not be deemed to be an agent, employee or
     legal representative of C&C. Rio Grande, its agents, employees and
     customers shall not have or represent themselves as having any authority to
     enter into contracts or make any commitments on behalf of C&C.

19.  ENTIRE AGREEMENT; VALIDITY; WAIVER. This Agreement constitutes the entire
     agreement between the parties and supersedes all previous agreements,
     negotiations and commitments between the parties, and shall not be changed
     or modified in any manner, except by mutual written consent signed by duly
     authorized representatives of each of the parties. Should any provisions of
     this Agreement be invalid or unenforceable under any applicable laws or
     regulations, all other provisions of the Agreement shall remain in effect.
     The terms and conditions of this Agreement may only be waived in writing by
     the party waiving compliance. The failure of either party to require
     performance of any provision of this Agreement or to exercise any right
     hereunder shall not constitute a waiver or prejudice that party's right to
     enforce the same at any later date. This Agreement may be executed in one
     or more counterparts, each of which will be deemed an original, but all of
     which together shall constitute one and the same instrument.

20.  ASSIGNABILITY. Neither party shall have the right to assign, delegate,
     sublicense or otherwise transfer its rights and obligations under this
     Agreement without the prior written consent of the other party.

21.  NOTICE. Any notice required or permitted in this Agreement shall be in
     writing and be given by facsimile or an express mail delivery service,
     which is able to track and confirm delivery, properly addressed to the
     party to be notified at its last known address, and shall be deemed
     delivered when so transmitted, if sent by facsimile and receipt is
     acknowledged in writing or otherwise when actually received, or on the
     second day after mailing, if sent via an express mail delivery service.

22.  GOVERNING LAW. This Agreement shall be governed by and construed in
     accordance with the laws of the State of North Carolina, without regard to
     its conflicts-of-law rules, and the laws of the United States of America.
     Rio Grande consents to the jurisdiction of the courts of the State of North
     Carolina in connection with all disputes or controversies arising under
     this Agreement.

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                         AND IS DENOTED HEREIN BY *****


IN WITNESS WHEREOF, the parties hereto, through their duly authorized officers,
have executed this Agreement as of the date first written above.


                                C3, Inc., d/b/a Charles & Colvard


                                /s/ Robert S. Thomas
                                -----------------------------------------------
                                Robert S. Thomas, President



                                The Bell Group, d/b/a Rio Grande


                                /s/ Hugh Bell
                                -----------------------------------------------
                                Hugh Bell, Chairman and Chief Executive Officer



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<PAGE>

                                   SCHEDULE 6

RIO GRANDE'S INTENDED MOISSANITE MARKETING EFFORTS

Insertion within our 2000-2001 Gems and Findings catalog. Moissanite will be
featured on a full page in the front of our annual catalog, that will be
released in July of this year. Our catalog is sent to 200,000+ customers and
prospects.

We will write a comprehensive article about Moissanite, and feature it in our
quarterly newsletter, News & Product Review. This newsletter is sent to all of
our customers. We can feature Moissanite in our next issue.

We will feature Moissanite in future jewelry-trade shows, including:
JCK Las Vegas, in June
Prime Time Las Vegas, in September
Catalog in Motion Tucson, in February 2001
MJSA New York, in March 2001
<PAGE>

                                   SCHEDULE 7

Rio Grande shall provide a formal moissanite training program for its customer
service, marketing and other personnel as designated by Rio Grande. This
training program includes the following general topics:

     >>  Manufacturing Specifications (jewelry manufacturing and repair)

     >>  Branding (product positioning, advertising and promotion)

     >>  Gemological Characteristics and Identification

     >>  Product Selection and Availability (shapes, sizes, colors and grades)

     >>  Operating Procedures (selected employees only)

C&C shall conduct a series of two-hour training sessions for Rio Grande
personnel designated as "trainers" within 30 days of the date of this Agreement.
Furthermore, C&C agrees to provide each participant with a training guide. C&C
will provide a master copy of the training guide that Rio Grande can use to copy
for future internal training of its employees.

Rio Grande agrees to train all appropriate employees, using the materials
developed and refined for the initial training, within 30 days of the date of
the last training session provided by C&C for Rio Grande's trainers. Rio Grande
agrees to incorporate the formal moissanite training program as part of its new
employee orientation training for appropriate employees, and agrees to provide
such employees with a refresher course on moissanite as needed or requested by
C&C.

C&C agrees to provide additional training up to one week to the Rio Grande
"trainers" twice during the first year and annually thereafter.

Rio Grande and C&C agree to review the formal moissanite training program at the
request of either party.
<PAGE>
   REDACTED - OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION
                         AND IS DENOTED HEREIN BY *****

                                    SCHEDULE 8

                       This information is confidential.
                All prices are subject to change without notice.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>               <C>              <C>               <C>               <C>
--------------------------------------------------------------------------------------------------------------------------
     ROUND        APPROX. CT. WT.  PRICE LEVEL 1     PRICE LEVEL 2    PRICE LEVEL 3     PRICE LEVEL 4     PRICE LEVEL 5
--------------------------------------------------------------------------------------------------------------------------
      2mm              0.03            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     2.5mm             0.05            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      3mm              0.09            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     3.5mm             0.14            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      4mm               0.2            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     4.5mm             0.29            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      5mm               0.4            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     5.5mm             0.53            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      6mm              0.69            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     6.5mm             0.87            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      7mm              1.09            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     7.5mm             1.34            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      8mm              1.63            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     8.5mm             1.95            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      9mm              2.31            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     9.5mm             2.72            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      10mm             3.17            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     10.5mm            3.67            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      11mm             4.22            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
     11.5mm            4.83            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------
      12mm             5.48            *****             *****            *****             *****             *****
--------------------------------------------------------------------------------------------------------------------------


---------------------------------------------------------------------------------------------------------------------
      OVAL        APPROX. CT. WT.   PRICE LEVEL 1   PRICE LEVEL 2     PRICE LEVEL 3    PRICE LEVEL 4   PRICE LEVEL 5
---------------------------------------------------------------------------------------------------------------------
      6x4              0.48             *****           *****             *****            *****           *****
---------------------------------------------------------------------------------------------------------------------
      7x5              0.82             *****           *****             *****            *****           *****
---------------------------------------------------------------------------------------------------------------------
      8x6              1.32             *****           *****             *****            *****           *****
---------------------------------------------------------------------------------------------------------------------



---------------------------------------------------------------------------------------------------------------------
    PRINCESS      APPROX. CT. WT.   PRICE LEVEL 1   PRICE LEVEL 2     PRICE LEVEL 3    PRICE LEVEL 4     PRICE LEVEL 5
---------------------------------------------------------------------------------------------------------------------
      3x3              0.16             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
    3.5x3.5            0.23             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
      4x4              0.35             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
    4.5x4.5             0.5             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
      5x5              0.68             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
    5.5x5.5            0.86             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
      6x6              1.12             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
    6.5x6.5            1.41             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
      7x7              1.72             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------



---------------------------------------------------------------------------------------------------------------------
   TRIANGULAR     APPROX. CT. WT.   PRICE LEVEL 1   PRICE LEVEL 2     PRICE LEVEL 3    PRICE LEVEL 4     PRICE LEVEL 5
---------------------------------------------------------------------------------------------------------------------
  3.5x3.5x3.5          0.14             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
     4x4x4              0.2             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
  4.5x4.5x4.5          0.29             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
     5x5x5             0.36             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
  5.5x5.5x5.5          0.51             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
     6x6x6             0.69             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
  6.5x6.5x6.5          0.88             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
     7x7x7             1.11             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
  7.5x7.5x7.5           1.3             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
     8x8x8              1.6             *****           *****             *****            *****              *****
---------------------------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
   REDACTED - OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION
                         AND IS DENOTED HEREIN BY *****

                                    SCHEDULE 8

                       This information is confidential.
                All prices are subject to change without notice.
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
<S>                                            <C>               <C>              <C>               <C>
-----------------------------------------------------------------------------------------------------------------------
    Radiant       Approx. Ct. Wt.   Price Level 1    Price Level 2    Price Level 3    Price Level 4     Price Level 5
-----------------------------------------------------------------------------------------------------------------------
      6x4               0.6             *****            *****            *****            *****              *****
-----------------------------------------------------------------------------------------------------------------------
      7x5              1.02             *****            *****            *****            *****              *****
-----------------------------------------------------------------------------------------------------------------------
      8x6               1.6             *****            *****            *****            *****              *****
-----------------------------------------------------------------------------------------------------------------------
</TABLE>



Price Level 1: Distributor price minimum order ***** carats per calendar quarter
Price Level 2: Distributor price minimum order ***** carats per calendar quarter
Price Level 3: Distributor price minimum order ***** carats per calendar quarter
Price Level 4: Distributor price minimum order ***** carats per calendar quarter
Price Level 5: Distributor price minimum order ***** carats per calendar quarter


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