# EDGAR Filing Document

**Accession Number:** 0001015155
**File Stem:** 0001104659-25-070851
**Filing Date:** 2025-7
**Character Count:** 40858
**Document Hash:** 9c2dd75fadeb9433798991c3db8e68a2
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-070851.hdr.sgml**: 20250725

**ACCESSION NUMBER**: 0001104659-25-070851

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20250721

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250725

**DATE AS OF CHANGE**: 20250725

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CHARLES & COLVARD LTD
- **CENTRAL INDEX KEY:** 0001015155
- **STANDARD INDUSTRIAL CLASSIFICATION:** JEWELRY, SILVERWARE & PLATED WARE [3910]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 561928817
- **STATE OF INCORPORATION:** NC
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-23329
- **FILM NUMBER:** 251152138

**BUSINESS ADDRESS:**
- **STREET 1:** 170 SOUTHPORT DRIVE
- **CITY:** MORRISVILLE
- **STATE:** NC
- **ZIP:** 27560
- **BUSINESS PHONE:** 9194680399

**MAIL ADDRESS:**
- **STREET 1:** 170 SOUTHPORT DRIVE
- **CITY:** MORRISVILLE
- **STATE:** NC
- **ZIP:** 27560

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** C3 INC /NC/
- **DATE OF NAME CHANGE:** 19970829

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): **July 21, 2025**

**Charles & Colvard, Ltd.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**North Carolina** | &nbsp;&nbsp;**000-23329** | &nbsp;&nbsp;**56-1928817** |
| &nbsp;&nbsp; (State or other jurisdiction of<br> incorporation) | &nbsp;&nbsp; (Commission File<br> Number) | &nbsp;&nbsp; (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;**170 Southport Drive** |  |
| &nbsp;&nbsp;**Morrisville**, **North Carolina** | &nbsp;&nbsp;**27560** |
| &nbsp;&nbsp;(Address of principal executive offices) | &nbsp;&nbsp;(Zip Code) |

---

**(919) 468-0399**

(Registrant's telephone number, including area code)

**N/A**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

---

| | |
|:---|:---|
| &nbsp;&nbsp;◻ | &nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| &nbsp;&nbsp;◻ | &nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| &nbsp;&nbsp;◻ | &nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| &nbsp;&nbsp;◻ | &nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |

---

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company&nbsp;&nbsp;&nbsp;&nbsp; ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.&nbsp;&nbsp;&nbsp;&nbsp; ◻

**Item 1.01 Entry into a Material Definitive Agreement.**

*Second and Final Closing of Convertible Secured Note Purchase Agreement*

As previously disclosed, on June 24, 2025, Charles & Colvard, Ltd. (the "Company") entered into a Convertible Secured Note Purchase Agreement (the "Note Purchase Agreement") with Ethara Capital LLC (the "Holder"), a Delaware limited liability company. In connection with the Note Purchase Agreement, the Company issued a convertible secured note to the Holder for an aggregate total purchase price of $2.0 million, issued in two tranches: (i) an initial closing in the amount of $500,000 on July 3, 2025, and (ii) a subsequent and final closing of $1.5 million on July 21, 2025.

**Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

***Director Resignation, Board Expansion and Appointment of New Chairman***

On July 21, 2024, the Company's board of directors (the "Board") accepted the resignation of Ollin Sykes from the Board. Mr. Sykes's resignation was not due to any disagreement or matter relating to the Company's operations, financials, policies, or practices.

Mr. Bhanderi, 22, is the Vice Chairman of Bhanderi Lab Grown Diamonds Inc., a leading Chemical Vapor Deposition (CVD) lab grown diamond manufacturer headquartered in New York City. Upon his appointment, Mr. Bhanderi will serve on the Company's Nominating and Governance Committee and Compensation Committee.

The Company believes Mr. Bhanderi's experience as an executive in the international lab grown diamond business qualifies him to serve on the Board and to provide management and operational advice to the Board. Mr. Bhanderi has agreed to delay and accrue his cash compensation payment for 12 months as the Company's executive director to which he is entitled in accordance with the Company's standard compensation policies and practices for non-employee directors of the Board, which is described in Item 8.01 below.

There are no related party transactions between Mr. Bhanderi and the Company (as defined in Item 404(a) of Regulation S-K), other than under the Note Purchase Agreement. The Board has determined that Mr. Bhanderi does not qualify as an independent director for purposes of Rule 5605(a)(2) of Rule 10A-3 under the Securities Exchange Act of 1934, as amended.

Mr. Tu, 56, a Chartered Financial Analyst (CFA), is the Founder and Managing Partner of Fusion Park LLC, an investment and strategic advisory company based in New York. Mr. Tu has been a professional investment manager, advisor, chief executive officer and board director of numerous public and private technology companies, including, most recently, Bhanderi Lab Grown Diamonds, Inc., Growlity, Inc., Infintium Fuel Cell Technologies, and Canyon Magnet Energy. From April 2019 to February 2022, Mr. Tu served as Chairman and Chief Executive Officer of Energy Focus, Inc. (Nasdaq: EFOI). Upon his appointment, Mr. Tu will serve on the Company's Audit Committee, Nominating and Governance Committee and Compensation Committee.

The Company believes Mr. Tu's experience as a financial, investment and business expert qualifies him to serve on the Board and to provide management and operational advice to the Board.

Except for the Consulting Agreement (discussed below) and under the Note Purchase Agreement, there are no related party transactions between Mr. Tu and the Company (as defined in Item 404(a) of Regulation S-K). The Board has determined that Mr. Tu does not qualify as an independent director for purposes of Rule 5605(a)(2) of Rule 10A-3 under the Securities Exchange Act of 1934, as amended.

***Consulting Agreement***

In connection with Mr. Tu's appointment to the Board, the Company and Fusion Park LLC, a Delaware limited liability company of which Mr. Tu is managing partner ("Fusion Park"), entered into a consulting agreement dated July 22, 2025, with an effective date of July 21, 2025 (the "Consulting Agreement"). Through Fusion Park, Mr. Tu will provide services to the Company as an independent contractor pursuant to the Consulting Agreement, including (i) serving as the chairman of the Board, and (ii) leading and overseeing (a) the Company's reorganization and restructuring, (b) executive performance evaluation and planning, (c) strategic partnerships and expansion, (d) capital allocation and planning, (e) investor relations, and (f) Company uplisting initiatives. Under the Consulting Agreement, the Company has agreed to pay Fusion Park $15,000 per month, payable in arrears every two (2) weeks, in addition to a $15,000 initial engagement fee. Mr. Tu will not receive any additional director-related cash compensation or fees in connection with his service on the Board. Either party can terminate the Consulting Agreement at any time for any reason with 30 days' written notice to the other party. The Consulting Agreement contains customary provisions relating to ownership of intellectual property, treatment of confidential information, and indemnification.

***Waiver of Severance Benefits***

 ****

As a condition to the Company's entry into the Note Purchase Agreement, each of Don O'Connell, the Company's Chief Executive Officer, and Clint J. Pete, the Company's Chief Financial Officer, agreed to waive all severance benefits to which they would otherwise be entitled under their respective employment agreements. On July 21, 2025 Mr. O'Connell and Mr. Pete executed waivers regarding their rights to severance benefits (the "Waivers").

The foregoing descriptions of the Consulting Agreement and the Waivers do not purport to be complete and are qualified in their entirety by the full text of the Consulting Agreement and the Waivers, copies of which are filed as Exhibits 10.1, 10.2, and 10.3 to this Current Report on Form 8-K and incorporated herein by reference.

**Item 8.01. Other Events.**

On July 22, 2025, the Board adopted a revised director compensation policy, effective as of July 22, 2025, which provides that each designated non-management member of the Board of Directors will receive (i) an annual retainer of $20,000 to be paid in four quarterly installments in arrears, to be pro-rated as applicable. Additionally, certain specific members of the Board of Directors will receive additional annual retainers, paid in four quarterly installments in arrears, pro-rated as applicable, in the following amounts: (i) the Chairperson will receive $30,000, in lieu of the $20,000 annual retainer paid to other members of the Board of Directors, (ii) the Chairperson of the Audit Committee will receive $15,000, (iii) the Chairperson of the Compensation Committee and Nominating and Governance Committee will receive $7,500 each, and (iv) Board committee members (excluding the committee Chairperson) will receive $5,000. Directors will not receive a fee for each Board of Directors or committee meeting, whether or not such meeting is in person or telephonic. Members of the Board of Directors may only receive retainers for serving as a member (including Chairperson) of two Board committees, and any Board Member who is Chairperson of more than one committee will receive a retainer of $5,000 for chairing the second committee.

**Item 9.01. Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit** <br> **Number** | **Description** |
| [10.1](tm2521753d1_ex10-1.htm) | [Consulting Agreement, dated July 22, 2025, by and between the Company and Fusion Park LLC.](tm2521753d1_ex10-1.htm) |
| [10.2](tm2521753d1_ex10-2.htm) | [Waiver Agreement, dated July 21, 2025, by and between the Company and Don. O'Connell.](tm2521753d1_ex10-2.htm) |
| [10.3](tm2521753d1_ex10-3.htm) | [Waiver Agreement, dated July 21, 2025, by and between the Company and Clint J. Pete.](tm2521753d1_ex10-3.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Charles & Colvard, Ltd.** | **Charles & Colvard, Ltd.** |
| July 25, 2025 | By | /s/ Clint J. Pete |
|  |  | Clint J. Pete |
|  |  | Chief Financial Officer |

---

## Exhibit 10.1

**Exhibit 10.1**

**<u>CONSULTANT AGREEMENT</u>**

THIS CONSULTANT AGREEMENT (the "Agreement") is made and entered into this 22<sup>nd</sup> day of July, 2025 to be effective July 21, 2025 (the "Agreement Effective Date") by and between Charles & Colvard, Ltd., a North Carolina Corporation having its principal office at 170 Southport Drive, Morrisville, NC 27560, on behalf of itself and its affiliates ("Company") on the one hand, and Fusion Park, a New Jersey limited liability company having its principal office at 57 West 57<sup>th</sup> Street, 4<sup>th</sup> Floor, New York, NY 10019 ("Consultant") on the other hand (each a "Party" and collectively, the "Parties"), who agree, for themselves, their successors and permitted assigns as follows:

1. <u>Services</u>. Consultant shall provide to Company during the Term certain consulting services as further described on the attached Statement of Work, with Statement of Work #1 being attached hereto as Exhibit A (the "Services"). In performing the Services, Consultant shall comply with all applicable laws, rules and regulations and written guidelines and policies provided by Company.

2. <u>Compensation</u>. For the completion of Services, Company will pay Consultant as set forth in an applicable Statement of Work.

Additionally, Consultant will receive reimbursement of reasonable, pre-approved out-of-pocket expenses incurred in the performance of Consultant's Services on behalf of the Company.

3. <u>Consultant</u>. The Parties agree that the legal relationship of Consultant to Company is strictly a consultant relationship and nothing in this Agreement shall be deemed to create a joint venture, agency, partnership, or employer-employee relationship between the Parties. Neither Party shall have any power to enter into any contract or commitment in the name of, or on behalf of, the other Party or to bind the other Party in any respect whatsoever. Consultant shall not be entitled to any benefits, rights or privileges provided by Company to its employees.

4. <u>Employment Taxes and Benefits</u>. Consultant must comply with all tax laws applicable to it, including but not limited to the filing of any necessary tax returns and the payments of all income and employment taxes. Company shall not be required to withhold from fees paid hereunder any state or federal income taxes or to make payments for Social Security ("FICA") tax, unemployment insurance, or any other payroll taxes. In the event Consultant fails to comply with applicable tax laws, Consultant will indemnify, defend and hold harmless Company and Company's affiliates, directors, officers, employees, permitted assigns and agents ("Company Representatives") from and against any and all obligations, actions, suits, claims, demands, settlements, judgments, damages, losses, liabilities, costs and expenses (including reasonable fees and expenses of attorneys and other professionals), of whatever type or nature incurred by Company by reason of a third party claim or assertion brought against Company and/or Company Representatives arising out of or relating to any obligation imposed by law on Company to pay any withholding taxes, social security, unemployment or disability insurance, or similar items in connection with fees received by Consultant pursuant to this Agreement. Neither Consultant nor its employees will be entitled to participate in any plans, arrangements, or distributions by Company pertaining to any bonus, stock option, profit sharing, insurance or similar benefits for Company's own employees.

5. <u>Confidential Information</u>. Consultant understands that during the Term, Consultant and its employees and agents may be exposed to Confidential Information. At all times during and after the Term, Consultant will retain and cause such Confidential Information to be retained in strict confidence and use it, and cause it to be used, only for purposes of this Agreement. "Confidential Information" means all information of Company or its affiliates that is not generally available to the public, whether written, oral, or computer based, including without limitation all business, financial, technical and product information, data, methods, processes, formulas, patterns, techniques, plans, Intellectual Property (as that term is defined below) and derivative works of all of the foregoing. All documents and information, including computer based information, disclosed to Consultant by Company, together with all copyrights and other proprietary rights therein, shall be and remain the exclusive property of Company and shall constitute Confidential Information, and Consultant shall return or destroy the originals and all copies thereof promptly to Company in good order without request upon completion of the Services, termination of this Agreement, or at any other time upon Company's request. Consultant shall not copy or use or permit the use of the above-described documents or information except for the sole purpose of performing the Services. Upon any termination or expiration of this Agreement, all inventions, copyrights, or other Intellectual Property created or developed by Consultant or Consultant's employees, associates or contractors during the course of providing the Services shall be assigned to Company.

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6. <u>Intellectual Property Ownership</u>. "Intellectual Property" means: (i) all ideas, discoveries, inventions, trademarks, service marks, trade dress, and works of authorship owned by Company, and all enhancements, derivative works, compilations, and other modifications thereof; (ii) all Work Product, and all ideas, discoveries, inventions, trademarks, service marks, trade dress, and works of authorship included therein and created, conceived, reduced to practice, or otherwise developed in connection therewith; and (iii) all patent, trademark, copyright, moral rights, trade secret and other intellectual property rights associated with any of the subject matter in foregoing clauses (i) and (ii). "Work Product" means any and all products, methods, processes, data, information, techniques, databases, documentation, know-how, and other tangible and intangible things generated or prepared by Consultant pursuant to any applicable Statement of Work.

Company shall own all right, title, and interest in and to all Intellectual Property, and in no event does or shall this Agreement grant to Consultant or any other individual or entity, whether expressly or impliedly, any such right, title, or interest. To the extent that, by operation of law or otherwise, any right, title, or interest in Intellectual Property vests in Consultant or any Consultant personnel, Consultant hereby: (i) irrevocably, unconditionally, and without encumbrance of any kind assigns to Company and forever waives and agrees never to assert, and shall cause all such Consultant's personnel to irrevocably, unconditionally, and without encumbrance of any kind assign to Company and forever waive and agree never to assert any and all such right, title, and interest; and (ii) agrees to execute all other documents and perform all other acts, and to cause all such Consultant personnel to execute all other writings and perform all other acts, that in Company's opinion may be necessary to establish and perfect in Company and protect, all right, title and interest, foreign and domestic, in and to the Intellectual Property. Without limiting the foregoing, to the extent subject to copyright protection in any jurisdiction, all Intellectual Property shall be considered a "work made for hire." Consultant forever waives and agrees never to assert, and shall cause all Consultant personnel to forever waive and agree never to assert any and all moral rights in the Intellectual Property, such as the right to be named as author, the right to modify, the right to prevent mutilation and the right to prevent commercial exploitation, whether arising under the Berne Convention or otherwise, and all other similar rights regardless of whether such right is denominated or generally referred to as a "moral right."

7. <u>Non-Disparagement</u>. Consultant agrees not to make any disclosures, issue any statements or otherwise cause to be disclosed any information which is designed, intended or might reasonably be anticipated to disparage Company, its officers, directors, its business, services, products or personnel.

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8. <u>Representations and Warranties</u>. Consultant hereby represents and warrants that: (i) Consultant's performance of all the terms of this Agreement does not and will not breach any agreement to keep in confidence information acquired in confidence prior to Consultant's engagement hereunder; (ii) neither Consultant nor Consultant's employees, have entered into, and will not enter into, any agreement either written or oral in conflict herewith; (iii) Consultant has full power, authority and right to execute and deliver this Agreement, has full power and authority to perform its obligations under this Agreement, and has taken all necessary action to authorize the execution and delivery of this Agreement; (iv) Consultant has all necessary licenses, permits and registrations, if any, and will perform Services in compliance with all applicable federal, state and local laws, rules and regulations; and (v) Consultant's provision of the Services and performance under this Agreement will not infringe the intellectual property rights of any third party.

9. <u>Term and Termination</u>**.** The term of this Agreement shall commence on the Agreement Effective Date and shall continue thereafter for a period of one (1) year (the "Initial Term"). Either Party may terminate this Agreement and/or any Statement of Work at any time upon thirty (30) days' written notice to the other Party. Upon termination by Company, its sole obligation to Consultant shall be to pay to Consultant for Services performed through the date of termination. Sections 4-7 and 9-13 shall survive any termination or expiration of this Agreement.

10. <u>Insurance</u>. Consultant agrees to maintain liability, workers' compensation, professional liability (errors and omissions) and/or other insurance in such amounts and with such carriers as Company may reasonably request, each of which policies shall, upon request of Company, name Company as an additional insured.

11. <u>Indemnification</u>. Consultant shall indemnify, defend, and hold harmless Company and Company Representatives from any and all claims, losses, damages, liabilities, obligations, actions, suits, demands, settlements, judgments, costs and expenses (including reasonable attorneys' fees) of whatever type or nature incurred by Company and/or Company Representatives by reason of a third-party claim or assertion brought against Company and/or Company Representatives arising out of or related to: (i) Consultant's gross negligence, willful misconduct and/or fraud; (ii) a breach by Consultant of Sections 4, 5, 6 and/or 8 of this Agreement; and (iii) allegations of intellectual property infringement in conjunction with Consultant's performance of the Services and Company's use and ownership of the Intellectual Property.

12. <u>Limitation of Liability</u>. In no event shall Company be liable for special, indirect, incidental or consequential damages under or in connection with this Agreement or the Services, including without limitation lost profits, to the full extent such may be disclaimed by law, even if Company has been advised of the possibility of such damages. In no event shall Company's aggregate liability exceed the amounts paid and/or payable under the Statement(s) of Work giving rise to such liability.

13. <u>Other Terms and Conditions</u>. Consultant represents and warrants that each employee, agent, or sub-consultant who performs work under this Agreement has been informed of the obligations contained herein and has agreed in writing to be bound by and will comply with them (Company shall be a third-party beneficiary of such agreement and Consultant shall provide Company with copies of such writings). Neither this Agreement nor any of the rights or obligations hereunder may be assigned, transferred or subcontracted by either Party without the prior written consent of the other Party. This Agreement constitutes the full understanding of the Parties and a complete statement of the terms of their agreement with respect to the subject matter herein and supersedes and cancels all prior agreements, correspondence, undertakings and communications of the Parties, oral or written, respecting such subject matter. Neither this Agreement nor any provision hereof may be amended, changed, modified or waived except by a written instrument signed by the Parties hereto. The construction, validity, interpretation and performance of this Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina, without regard to the conflicts of law principles thereof. In case any provision of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof will not in any way be affected or impaired thereby. Consultant agrees and acknowledges that Company would be damaged irreparably by Consultant's failure to perform its obligations to Company hereunder; accordingly, Company shall be entitled to enforce this Agreement by injunctive and other available relief, including, but not limited to, specific performance. Section headings are for reference purposes only and in no way affect the meaning or interpretation of this Agreement. The failure of either Party at any time to require performance of any provision shall not waive or affect the right at a later time to enforce any provision. Any notice required or permitted by this Agreement shall be in writing and deemed delivered if delivered: (a) by personal delivery when delivered, (b) by overnight courier upon written verification of receipt, (c) by telecopy or facsimile transmission when confirmed by telecopy or facsimile transmission report, (d) by certified or registered mail, return receipt requested, upon verification of receipt or (e) by email notification as long as "NOTICE" or "LEGAL NOTICE" appears in the subject line of the email and the email is set up to show a delivery confirmation. Notices must be sent to the contacts and address in the SOW, or any new address provided by the permitted notice methods, and in the case of Company, with a copy to the attention of Counsel (and, if by email, legal@charlesandcolvard.com).

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Agreement Effective Date specified above.

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| | | | |
|:---|:---|:---|:---|
| **CHARLES & COLVARD, LTD.** | **CHARLES & COLVARD, LTD.** | **Fusion Park LLC** | **Fusion Park LLC** |
| By: | /s/ Neal Goldman | By: | /s/ James Tu |
| Name: Neal Goldman | Name: Neal Goldman | Name: James Tu | Name: James Tu |
| Title: Director | Title: Director | Title: Managing Partner | Title: Managing Partner |

---

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**EXHIBIT A**

**Statement of Work**

This Statement of Work #1 ("SOW #1") is made as of July 22, 2025 to be effective as of July 21, 2025 (the "SOW #1 Effective Date") by and between Charles & Colvard, Ltd., ("Company") and **Fusion Park LLC** ("Consultant"). This SOW #1 is subject to and governed by the Consultant Agreement dated July 22, 2025 to be effective as of July 21, 2025 between the Parties (the "Agreement"), and all the terms and conditions of which shall be incorporated by reference herein. All capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Description of Services.** Consultant shall provide the following consulting services ("Services")
to Company pursuant to this SOW #1, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Chair the Board of Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Lead and oversee Company's reorganization and restructuring, executive performance evaluation and planning, strategic partnerships
and expansion, capital allocation and planning, investor relations and company uplisting (back to Nasdaq) initiatives.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Term.** The time for performance of Services under this SOW #1 is one
year from the SOW #1 Effective Date , unless otherwise extended or terminated as provided for in the
Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Fees/Rates.** The Company shall pay Consultant as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Fifteen thousand dollars ($15,000.00) initial engagement fees, due upon signing of the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Fifteen thousand dollars ($15,000.00) per month, payable in arrears every two (2) weeks; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. An appropriate equity award to be granted within thirty (30) days of execution of the Agreement and this
SOW #1.

For the avoidance of doubt, Consultant will not receive additional Board of Director-related compensation outside of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **General.** This SOW #1 together with the Agreement constitute the entire agreement between the Parties
with respect to the subject matter hereof and supersede any and all prior or collateral agreements with respect to the subject matter
hereof. In the event of a direct conflict between the Agreement and this SOW #1, the terms of this SOW #1 shall control.

{SIGNATURE PAGE TO FOLLOW}

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IN WITNESS WHEREOF, the Parties have executed this SOW #1 as of July 22, 2025.

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| | | | |
|:---|:---|:---|:---|
| **CHARLES & COLVARD, LTD.** | **CHARLES & COLVARD, LTD.** | **Fusion Park LLC** | **Fusion Park LLC** |
| By: | /s/ Neal Goldman | By: | /s/ James Tu |
| Name: Neal Goldman | Name: Neal Goldman | Name: James Tu | Name: James Tu |
| Title: Director | Title: Director | Title: Managing Partner | Title: Managing Partner |

---

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## Exhibit 10.2

**Exhibit 10.2**

**WAIVER**

This Waiver, dated as of <u>July 21, 2025</u> (this "**Waiver**"), is made by Don O'Connell, an individual ("**Employee**"), in favor of Charles & Colvard, Ltd., a North Carolina corporation (the "**Company**", and together with Employee, the "**Parties**", and each, a "**Party**").

WHEREAS, the Parties have entered into an Amended and Restated Employment Agreement, dated as of June 1, 2020 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with its provisions, the "**Employment Agreement**");

WHEREAS, the Company entered into that certain Convertible Secured Note Purchase Agreement (the "**Purchase Agreement**") dated as of June 24, 2025 by and between the Company and Ethara Capital LLC (the "**Investor**"), pursuant to which the Investor will make an investment in the Company (the "**Investment**");

WHEREAS, as a condition to the making of the Investment, the Investor requires that Employee execute and deliver this Waiver and Employee has agreed to execute and deliver this Waiver to induce the Investor to make the Investment; and

WHEREAS, Employee owns a direct interest in the Company and acknowledges that he will derive substantial benefits from the Investor making the Investment in the Company.

NOW, THEREFORE, in consideration of the premises set forth above and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. <u>Waiver</u>. Employee hereby expressly and irrevocably waives any and all rights to (a) any severance payments pursuant to Section 6(h)(ii) of the Employment Agreement, including any right to receive payments equal to twelve (12) months of his current base salary, and (b) accelerated vesting of or the lapsing of any restrictions on any equity awards granted to Employee pursuant to Section 6(h)(iii) of the Employment Agreement, in each case following the termination of his employment with the Company.

2. <u>Effectiveness of Waiver; Limited Effect; No Modifications</u>. This Waiver will become effective as of the date first written above. The waiver set forth above shall be limited precisely as written and relates solely in the manner and to the extent described above, and nothing in this Waiver shall be deemed to constitute a waiver by Employee of compliance with respect to any other term, provision, or condition of the Employment Agreement. Nothing contained in this Waiver will be deemed or construed to amend, supplement, or modify the Employment Agreement or otherwise affect the rights and obligations of either Party thereto, all of which remain in full force and effect.

3. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Waiver, and all matters arising out of or relating to this Waiver, whether sounding in contract, tort, or statute, are governed by, and construed in accordance with, the laws of the State of New York, without giving effect to the conflict of laws provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Waiver shall inure to the benefit of and be binding upon each of the Parties and each of their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The headings in this Waiver are for reference only and do not affect the interpretation of this Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Waiver may be executed in counterparts, each of which is deemed an original, but all of which constitutes one and the same agreement. Delivery of an executed counterpart of this Waiver by email or other electronic means shall be effective as delivery of an original executed counterpart of this Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Waiver constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each Party had an opportunity to consult with an attorney in reviewing and drafting this Waiver. Any uncertainty or ambiguity shall not be construed for or against any Party based on attribution of drafting to any Party.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, Employee has executed this Waiver as of the date first written above.

---

| | | |
|:---|:---|:---|
| | | /s/ Don O'Connell |
| | | DON O'CONNELL |
| Accepted and Agreed: | Accepted and Agreed: |  |
| CHARLES & COLVARD, LTD. | CHARLES & COLVARD, LTD. |  |
| By: | /s/ Clint Pete |  |
| Name: Clint Pete | Name: Clint Pete |  |
| Title: CFO | Title: CFO |  |

---

## Exhibit 10.3

**Exhibit 10.3**

**WAIVER**

This Waiver, dated as of <u>July 21, 2025</u> (this "**Waiver**"), is made by Clint J. Pete, an individual ("**Employee**"), in favor of Charles & Colvard, Ltd., a North Carolina corporation (the "**Company**", and together with Employee, the "**Parties**", and each, a "**Party**").

WHEREAS, the Parties have entered into an Employment Agreement, dated as of May 23, 2017 (as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with its provisions, the "**Employment Agreement**");

WHEREAS, the Company entered into that certain Convertible Secured Note Purchase Agreement (the "**Purchase Agreement**") dated as of June 24, 2025 by and between the Company and Ethara Capital LLC (the "**Investor**"), pursuant to which the Investor will make an investment in the Company (the "**Investment**");

WHEREAS, as a condition to the making of the Investment, the Investor requires that Employee execute and deliver this Waiver and Employee has agreed to execute and deliver this Waiver to induce the Investor to make the Investment; and

WHEREAS, Employee owns a direct interest in the Company and acknowledges that he will derive substantial benefits from the Investor making the Investment in the Company.

NOW, THEREFORE, in consideration of the premises set forth above and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. <u>Waiver</u>. Employee hereby expressly and irrevocably waives any and all rights to (a) any severance payments pursuant to Section 6(h)(ii) or Section 6(h)(iii) of the Employment Agreement, including any right to receive payments equal to six (6) months or twelve (12) months of his current base salary, and (b) accelerated vesting of or the lapsing of any restrictions on any equity awards granted to Employee pursuant to Section 6(h)(iv) of the Employment Agreement, in each case following the termination of his employment with the Company.

2. <u>Effectiveness of Waiver; Limited Effect; No Modifications</u>. This Waiver will become effective as of the date first written above. The waiver set forth above shall be limited precisely as written and relates solely in the manner and to the extent described above, and nothing in this Waiver shall be deemed to constitute a waiver by Employee of compliance with respect to any other term, provision, or condition of the Employment Agreement. Nothing contained in this Waiver will be deemed or construed to amend, supplement, or modify the Employment Agreement or otherwise affect the rights and obligations of either Party thereto, all of which remain in full force and effect.

3. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Waiver, and all matters arising out of or relating to this Waiver, whether sounding in contract, tort, or statute, are governed by, and construed in accordance with, the laws of the State of New York, without giving effect to the conflict of laws provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Waiver shall inure to the benefit of and be binding upon each of the Parties and each of their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The headings in this Waiver are for reference only and do not affect the interpretation of this Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Waiver may be executed in counterparts, each of which is deemed an original, but all of which constitutes one and the same agreement. Delivery of an executed counterpart of this Waiver by email or other electronic means shall be effective as delivery of an original executed counterpart of this Waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Waiver constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each Party had an opportunity to consult with an attorney in reviewing and drafting this Waiver. Any uncertainty or ambiguity shall not be construed for or against any Party based on attribution of drafting to any Party.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, Employee has executed this Waiver as of the date first written above.

---

| | | |
|:---|:---|:---|
| | | /s/ Clint J. Pete |
| | | CLINT J. PETE |
| Accepted and Agreed: | Accepted and Agreed: |  |
| CHARLES & COLVARD, LTD. | CHARLES & COLVARD, LTD. |  |
| By: | /s/ Don O'Connell |  |
| Name: Don O'Connell | Name: Don O'Connell |  |
| Title: CEO | Title: CEO |  |

---