Document:

Amended and Restated Credit Agreement

 Exhibit 10.1 
 SEVENTH AMENDMENT TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 
 THIS SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (the “Seventh Amendment”) is dated as of April 9, 2008, and is made
by and among PENN VIRGINIA OPERATING CO., LLC, a Delaware limited liability company (the “Borrower”), the GUARANTORS (individually a “Guarantor” and collectively, the “Guarantors”),
the FINANCIAL INSTITUTIONS PARTY HERETO (individually a “Lender” and collectively, the “Lenders”) and PNC BANK, NATIONAL ASSOCIATION, as agent for the Lenders (the “Agent”).

 RECITALS: 
 WHEREAS,
the Borrower, the Guarantors, the Lenders and the Agent are parties to that certain Amended and Restated Credit Agreement, dated as of March 3, 2005, as amended by that certain First Amendment, Waiver, and Consent to Amended and Restated Credit
Agreement, dated as of July 15, 2005, that certain Second Amendment to Amended and Restated Credit Agreement dated as of August 22, 2006 and effective as of August 15, 2006, that certain Third Amendment to Amended and Restated Credit
Agreement dated as of December 11, 2006, that certain Fourth Amendment to Amended and Restated Credit Agreement dated as of September 7, 2007, that certain Fifth Amendment to Amended and Restated Credit Agreement dated as of
October 8, 2007 and that certain Sixth Amendment, Waiver, and Consent to Amended and Restated Credit Agreement, dated as of March 14, 2008 (as amended, the “Credit Agreement”); unless otherwise defined herein, capitalized
terms used herein shall have the meanings given to them in the Credit Agreement; 
 WHEREAS, the Borrower and the Guarantors have requested
that the Lenders agree to amend certain provisions of the Credit Agreement in order to increase the Revolving Credit Commitment from $450,000,000 to $600,000,000 and to make changes to the pricing grid set forth on Schedule 1.1(A) to the Credit
Agreement, all pursuant to the terms and subject to the applicable conditions set forth herein, and the Required Lenders (as defined in the Credit Agreement) have agreed to amend the Credit Agreement as hereinafter provided. 
 NOW, THEREFORE, in consideration of the foregoing and intending to be legally bound, and incorporating the above-defined terms herein, the parties hereto
agree as follows: 
 1. Recitals. The foregoing recitals are true and correct and incorporated herein by reference. 

 2. Amendment to Credit Agreement. 
 (a) New Definition. The following new definitions are hereby inserted in Section 1.1 of the Credit Agreement in alphabetical order:

 “CrossPoint Closing Date means the date one or more of the Loan Parties makes an initial investment in CrossPoint.”

 “Seventh Amendment Effective Date means April 9, 2008.” 
 (b) Existing Definition. 
 (i) The definition of Immaterial Subsidiary contained in Section 1.1 of the Credit Agreement is hereby amended and restated as follows: 
 “Immaterial Subsidiary means, collectively, CBC/Leon Limited Partnership, an Oklahoma limited partnership; Leon Limited Partnership I, an Oklahoma limited partnership; Coal Handling Solutions LLC, a
Delaware limited liability company; Covington Handling LLC, a Delaware limited liability company; Maysville Handling LLC, a Delaware limited liability company; Kingsport Handling LLC, a Delaware limited liability company; Kingsport Services LLC, a
Delaware limited liability company; Thunder Creek Gas Services, L.L.C., a Wyoming limited liability company (“Thunder Creek”), and CrossPoint Pipeline, LLC, a Delaware limited liability company (“CrossPoint”).” 

(ii) The definition of Revolving Credit Commitment Increase Date contained in Section 1.1 of the Credit Agreement is hereby
deleted. 
 (c) Increase of Revolving Credit Commitments. 
 (i) Subject to satisfaction of the conditions set forth in Section 4 below, on the Seventh Amendment Effective Date, the Borrower,
the Agent and the Lenders hereby increase the Revolving Credit Commitments from $450,000,000 to $600,000,000 so that after giving effect to such increase, each Lender has the Revolving Credit Commitment as set forth opposite such Lender’s name
on the amended and restated Schedule 1.1(B) attached to this Seventh Amendment. 
 (ii) On the Seventh Amendment
Effective Date, the Borrower shall repay all Revolving Credit Loans outstanding along with any and all accrued interest and fees on the Seventh Amendment Effective Date, subject to the Borrower’s indemnity obligations under Section 5.6.2
[Indemnity] of the Credit Agreement provided that the Borrower may borrow new Revolving Credit Loans with a Borrowing Date on the Seventh Amendment Effective Date. Each of the Lenders shall participate in any new Loans made on or after the Seventh
Amendment Effective Date in accordance with their respective Ratable Shares after giving effect to the increase in Revolving Credit Commitments contemplated by this Seventh Amendment. 
  

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 (iii) On the Seventh Amendment Effective Date and after giving effect to the increase in
the Revolving Credit Commitments pursuant hereto, each Lender (a) will be deemed to have purchased a participation in each then outstanding Letter of Credit equal to its Ratable Share of each such Letter of Credit and the participation of each
other Lender in each such Letter of Credit shall be adjusted accordingly; and (b) will acquire, (and will pay to the Agent, for the account of each Lender, in immediately available funds, an amount equal to) its Ratable Share of all outstanding
Participation Advances. 
 (d) Loans, Acquisitions and Investments. Section 2.10 [Increase in Commitments] of the Credit
Agreement is hereby deleted. 
 (e) Loans and Investments. Subsection 8.2.4(v) is hereby amended and restated to read as follows:

 “(v) investments in (1) Immaterial Subsidiaries, other than Thunder Creek or CrossPoint, as of the Closing Date, (2) Thunder
Creek as of the Sixth Amendment Effective Date and (3) CrossPoint as of the CrossPoint Closing Date in an amount not to exceed $6,000,000; and” 
 (f) Schedules. In order to reflect the changes in the pricing grid set forth on Schedule 1.1(A) to the Credit Agreement and increase in the Revolving Credit Commitments, Schedule 1.1(A) [Pricing Grid]
and Part 1 of Schedule 1.1(B) [Commitments of Lenders and Addresses for Notices to Lenders] shall be amended and restated to read as set forth on the Schedules attached to this Amendment bearing such name and numerical reference. 

3. Consent and Waiver. Effective as of the date hereof: 
 (a) the Agent and the Lenders hereby consent to the Loan Parties entering into an agreement to (i) form CrossPoint, (ii) own fifty percent (50%) of the membership interests of CrossPoint and
(iii) make an initial investment in CrossPoint not to exceed $6,000,000 (collectively, the “CrossPoint Investment”); and 
 (b) the Agent and the Lenders hereby waive the Loan Parties’ compliance with the requirement set forth in Section 8.2.4 [Loans and Investments] of the Credit Agreement as it relates to the CrossPoint Investment. The Lenders do not
amend, modify or waive Section 8.2.4 [Loans and Investments] for any other purpose, or any future periods, except as expressly provided for herein. 
 4. Conditions to Effectiveness. The Consent and Waiver contained in Section 3 of this Seventh Amendment shall be effective as of the date hereof. The amendments contained in Section 2 of this Seventh
Amendment shall become effective upon satisfaction of each of the following conditions being satisfied to the satisfaction of the Agent: 
 (a) Execution and Delivery of Seventh Amendment. The Borrower, the Guarantors, each of the Lenders and the Agent shall have executed those Loan Documents to which it is a party, and all other documentation necessary for effectiveness
of this Amendment shall have been executed and delivered all to the satisfaction of the Borrower, the Lenders and the Agent. 
  

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 (b) Notes. The Borrower shall have executed and delivered to each of the Lenders whose Revolving
Credit Commitment is increasing new Revolving Credit Notes, reflecting the amount of each such Lender’s Revolving Credit Commitments as so increased. 
 (c) Each new Lender that joins the Credit Agreement shall have executed a New Lender Joinder substantially in the form of Exhibit A attached hereto and the Loan Parties and the Agent shall have acknowledged
and/or consented, as applicable, to the joinder of such new Lender. 
 (d) Organization, Authorization and Incumbency. There shall be
delivered to the Agent for the benefit of each Lender a certificate, dated as of the Seventh Amendment Effective Date and signed by the Secretary or an Assistant Secretary of each Loan Party, certifying as appropriate as to: 
 (i) all action taken by such party in connection with this Seventh Amendment and the other Loan Documents together with resolutions of the
general partner of the Parent of the Borrower on behalf of each of Loan Parties evidencing same; 
 (ii) the names of the
officer or officers authorized to sign this Seventh Amendment and the other documents executed and delivered in connection herewith and the true signatures of such officer or officers and specifying the Authorized Officers permitted to act on behalf
of the Loan Parties for purposes of the Loan Documents and the true signatures of such officers, on which the Agent and each Lender may conclusively rely; and 
 (iii) copies of its organizational documents, including its certificate of incorporation, bylaws, certificate of limited partnership,
partnership agreement, certificate of formation and limited liability company agreement, in each case as in effect on the Seventh Amendment Effective Date, certified by the appropriate state official where such documents are filed in a state office
together with certificates from the appropriate state officials as to the continued existence and good standing of the Borrower in each state where organized or qualified to do business, provided, however, that the Loan Parties may, in lieu of
delivering copies of the foregoing organizational documents and good standing certificates, certify that the organizational documents and good standing certificates previously delivered by the Loan Parties to the Agent remain in full force and
effect and have not been modified, amended, or rescinded. 
 (e) Opinion of Counsel. The Borrower shall cause to be delivered to the
Agent an opinion of counsel of the Borrower with respect to this Seventh Amendment in such form as shall be acceptable to the Agent. 
 (f)
Material Adverse Change. Each of the Loan Parties represents and warrants to the Agent and the Lenders that, by its execution and delivery hereof to the Agent, after giving effect to this Seventh Amendment, no Material Adverse Change shall
have occurred with respect to the Borrower or any of the Loan Parties since the Closing Date of the Credit Agreement. 
  

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 (g) Litigation. Each of the Loan Parties represents and warrants to the Agent and the Lenders
that, by its execution and delivery hereof to the Agent, after giving effect to this Seventh Amendment, there are no actions, suits, investigations, litigation or governmental proceedings pending or, to the Loans Parties’ knowledge, threatened
against any of the Loan Parties that could reasonably be expected to result in a Material Adverse Change. 
 (h) Officer’s
Certificate. There shall be delivered to the Agent a certificate of the Loan Parties, dated the Seventh Amendment Effective Date and signed by the Chief Executive Officer, President, Vice President or Chief Financial Officer of each Loan Party,
certifying that: (1) the representations and warranties of the Borrower contained in Article 6 of the Credit Agreement shall be true and accurate on and as of the Seventh Amendment Effective Date with the same effect as though such
representations and warranties had been made on and as of such date (except representations and warranties which relate solely to an earlier date or time, which representations and warranties shall be true and correct on and as of the specific dates
or times referred to therein); (2) the Loan Parties shall have performed and complied with all covenants and conditions of the Credit Agreement and this Seventh Amendment; (3) no Event of Default or Potential Default under the Credit
Agreement shall have occurred and be continuing or shall exist and (4) no Material Adverse Change has occurred with respect to any Loan Party since March 3, 2005. 
 (i) Representations and Warranties; No Event of Default. The representations and warranties set forth in the Credit Agreement and this Seventh
Amendment shall be true and correct on and as of the Seventh Amendment Effective Date with the same effect as though such representations and warranties had been made on and as of such date (except representations and warranties which relate solely
to an earlier date or time, which representations and warranties shall be true and correct on and as of the specific dates or times referred to therein), and no Potential Default or Event of Default shall exist and be continuing under the Credit
Agreement or under any other Material Contract, as of the Seventh Amendment Effective Date. 
 (j) Note Purchase Agreement. No
“Default” or “Event of Default” (as such terms are defined in the Note Purchase Agreement) is in existence or has occurred and is continuing under the Note Purchase Agreement after giving effect to the amendments set forth in the
Seventh Amendment. 
 (k) Consents and Approvals. No consent, approval, exemption, order or authorization of, or a registration or
filing with, any Official Body or any other Person is required by any Law or any agreement in connection with the execution, delivery and carrying out of this Seventh Amendment by any Loan Party other than such consents, approvals, exemptions,
orders or authorizations that have already been obtained. 
 (l) Amendment Fee. The Borrower shall have paid to the Agent (i) any
fees as set forth in a the Agent’s Fee Letter by and between the Borrower and the Agent dated March 12, 2008 and (ii) the reasonable costs and expenses of the Agent including, without limitation, reasonable fees of the Agent’s
counsel in connection with this Amendment. 
  

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 5. Miscellaneous. 
 (a) Representations and Warranties. By its execution and delivery hereof to the Agent, each of the Loan Parties represents and warrants to the Agent and the Lenders that (i) such Loan Party has duly
authorized, executed and delivered this Seventh Amendment, and (ii) no “Default” or “Event of Default” (as such terms are defined in the Note Purchase Agreement) shall have occurred and be continuing under the Note Purchase
Agreement after giving effect to the amendments set forth in the Seventh Amendment. 
 (b) Full Force and Effect. All provisions of
the Credit Agreement remain in full force and effect on and after the Seventh Amendment Effective Date and the date hereof except as expressly amended hereby. The parties do not amend any provisions of the Credit Agreement except as expressly
amended hereby. 
 (c) Counterparts. This Seventh Amendment may be signed in counterparts (by facsimile transmission or otherwise) but
all of such counterparts together shall constitute one and the same instrument. 
 (d) Incorporation into Credit Agreement. This
Seventh Amendment shall be incorporated into the Credit Agreement by this reference. All representations, warranties, Events of Default and covenants set forth herein shall be a part of the Credit Agreement as if originally contained therein.

 (e) Governing Law. This Seventh Amendment and the rights and obligations of the parties hereunder shall be governed by, and
construed in accordance with, the laws of the Commonwealth of Pennsylvania without regard to its conflict of laws principles. 
 (f)
Payment of Fees and Expenses. The Borrower unconditionally agrees to pay and reimburse the Agent and save the Agent harmless against liability for the payment of all out-of-pocket costs, expenses and disbursements, including without
limitation, to the Agent for itself the reasonable costs and expenses of the Agent including, without limitation, the reasonable fees and expenses of counsel incurred by the Agent in connection with the development, preparation, execution,
administration, interpretation or performance of this Seventh Amendment and all other documents or instruments to be delivered in connection herewith. 
 (g) No Novation. Except as amended hereby, all of the terms and conditions of the Credit Agreement and the other Loan Documents shall remain in full force and effect. Borrower, the Guarantors, each Lender, and
the Agent acknowledge and agree that this Seventh Amendment is not intended to constitute, nor does it constitute, a novation, interruption, suspension of continuity, satisfaction, discharge or termination of the obligations, loans, liabilities, or
indebtedness under the Credit Agreement or the other Loan Documents. 
 [SIGNATURE PAGES FOLLOW] 
  

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 [SIGNATURE PAGE TO PENN VIRGINIA OPERATING CO., LLC 
 SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT] 
 IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this Seventh Amendment as of the day and year first above written. 
  

					
	BORROWER	 	
	
	PENN VIRGINIA OPERATING CO., LLC
			
	By:	 	 /s/ Frank A. Pici
                                
	 	(SEAL)
	Name:	 	Frank A. Pici	 	
	Title:	 	Vice President and Chief Financial Officer	 	

  

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 [SIGNATURE PAGE TO PENN VIRGINIA OPERATING CO., LLC 
 SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT] 
  

					
	 GUARANTORS:
	 	
	
	PENN VIRGINIA RESOURCE PARTNERS, L.P.
			
	 By:
	 	Penn Virginia Resource GP, LLC, its sole general partner	 	
	CONNECT ENERGY SERVICES, LLC	 	
	CONNECT GAS GATHERING, LLC	 	
	CONNECT GAS PIPELINE LLC	 	
	CONNECT NGL PIPELINE, LLC	 	
	FIELDCREST RESOURCES LLC	 	
	K RAIL LLC	 	
	LOADOUT LLC	 	
	PVR CHEROKEE GAS PROCESSING LLC	 	
	PVR EAST TEXAS GAS PROCESSING, LLC	 	
	PVR GAS PIPELINE, LLC	 	
	PVR GAS PROCESSING LLC	 	
	PVR GAS RESOURCES, LLC	 	
	PVR HAMLIN I, LLC	 	
	PVR HAMLIN II, LLC	 	
	PVR HAMLIN, L.P.	 	
	 By:
	 	PVR Hamlin I, LLC, its sole general partner	 	
	PVR HYDROCARBONS LLC	 	
	PVR LAVERNE GAS PROCESSING LLC	 	
	PVR MIDSTREAM LLC	 	
	PVR NATURAL GAS GATHERING LLC	 	
	PVR OKLAHOMA NATURAL GAS GATHERING LLC	 	
	SUNCREST RESOURCES LLC	 	
	TONEY FORK LLC	 	
	WISE LLC	 	
			
	 By:
	 	 /s/ Frank A. Pici
	 	 (SEAL)

	 Name:
	 	Frank A. Pici	 	
	 Title:
	 	Vice President	 	

  

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 [SIGNATURE PAGE TO PENN VIRGINIA OPERATING CO., LLC 
 SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT] 
  

			
	LENDERS
	
	 BNP PARIBAS, individually and as Managing
 Agent

		
	By:	 	 /s/ Robert Long

	Name:	 	Robert Long
	Title:	 	Vice President

  

			
	By:	 	 /s/ Courtney Kubesch

	 Name:
	 	Courtney Kubesch
	 Title:
	 	Vice President

  

			
	 BRANCH BANKING & TRUST COMPANY

		
	 By:
	 	 /s/ Hugh Ferguson

	 Name:
	 	Hugh Ferguson
	 Title:
	 	Senior Vice President

  

			
	 COMERICA BANK

		
	 By:
	 	 /s/ Gregory D. Smith

	 Name:
	 	Gregory D. Smith
	 Title:
	 	Vice President

  

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 [SIGNATURE PAGE TO PENN VIRGINIA OPERATING CO., LLC 
 SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT] 
  

			
	BANK OF AMERICA, N.A. successor by merger to FLEET NATIONAL BANK, individually and as Documentation Agent
		
	By:	 	 /s/ Adam H. Fey

	Name:	 	Adam H. Fey
	Title:	 	Vice President

  

			
	FORTIS CAPITAL CORP.
		
	By:	 	 /s/ Casey Lowary

	Name:	 	Casey Lowary
	Title:	 	Director
		
	By:	 	 /s/ Ilene Fowler

	Name:	 	Ilene Fowler
	Title:	 	Director

  

			
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Dianne L. Russell

	Name:	 	Dianne L. Russell
	Title:	 	Vice President

  

			
	PNC BANK, NATIONAL ASSOCIATION,
	individually and as Agent
		
	By:	 	 /s/ Richard C. Munsick

	Name:	 	Richard C. Munsick
	Title:	 	Senior Vice President

  

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 [SIGNATURE PAGE TO PENN VIRGINIA OPERATING CO., LLC 
 SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT] 
  

			
	 ROYAL BANK OF CANADA, individually and
 as Syndication Agent

		
	By:	 	 /s/ Don J. McKinnerney

	Name:	 	Don J. McKinnerney
	Title:	 	Authorized Signatory

  

			
	SOCIÉTÉ GÉNÉRALE, individually and as Managing Agent
		
	By:	 	 /s/ Elena Robciuc

	Name:	 	Elena Robciuc
	Title:	 	Director

  

			
	AMEGY BANK NATIONAL ASSOCIATION (formerly Southwest Bank of Texas, N.A.)
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

			
	SUNTRUST BANK, individually and as Documentation Agent
		
	By:	 	 /s/ Carmen J. Malizia

	Name:	 	Carmen J. Malizia
	Title:	 	Vice President

  

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 [SIGNATURE PAGE TO PENN VIRGINIA OPERATING CO., LLC 
 SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT] 
  

			
	 WACHOVIA BANK, NATIONAL ASSOCIATION, individually and as
 Documentation Agent

		
	By:	 	 /s/ Jonathan R. Richardson

	Name:	 	Jonathan R. Richardson
	Title:	 	Senior Vice President

  

			
	UBS LOAN FINANCE LLC
		
	By:	 	 /s/ Richard L. Tavrow

	Name:	 	Richard L. Tavrow
	Title:	 	Director
		
	By:	 	 /s/ Mary E. Evans

	Name:	 	Mary E. Evans
	Title:	 	Associate Director
	
	BMO CAPITAL MARKETS FINANCING, INC.
		
	By:	 	 /s/ James Whitmore

	Name:	 	James Whitmore
	Title:	 	Managing Director
	
	BANK OF OKLAHOMA, N.A.
		
	By:	 	 /s/ Jason B. Webb

	Name:	 	Jason B. Webb
	Title:	 	Vice President

  

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 [SIGNATURE PAGE TO PENN VIRGINIA OPERATING CO., LLC 
 SEVENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT] 
  

			
	COMMERCE BANK, N.A.
		
	By:	 	 /s/ Gary R. Martz

	Name:	 	Gary R. Martz
	Title:	 	Vice President

  

			
	UNION BANK OF CALIFORNIA, N.A.
		
	By:	 	 /s/ Richard Reeves

	Name:	 	Richard Reeves
	Title:	 	Vice President

  

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 SCHEDULE 1.1(A) 
 Pricing Grid-Variable pricing and Fees Based on Pricing Grid Leverage Ratio 
  

															
	 Level
	  	 Pricing Grid Leverage Ratio
	  	Euro-Rate
Margin
(Revolving
Credit Loan)	 	 	Base Rate
Margin
(Revolving
Credit Loan)	 	 	Commitment
Fee	 	 	Applicable
Letter of
Credit Fee	 
	I	  	Less than or equal to 2.50 to 1.00	  	1.00	%	 	.00	%	 	.175	%	 	1.00	%
	II	  	Greater than 2.50 to 1.00 but less than or equal to 3.00 to 1.00	  	1.25	%	 	.25	%	 	.20	%	 	1.25	%
	III	  	Greater than 3.00 to 1.00 but less than or equal to 3.50 to 1.00	  	1.50	%	 	.50	%	 	.225	%	 	1.50	%
	IV	  	Greater than 3.50 to 1.00	  	1.75	%	 	.75	%	 	.25	%	 	1.75	%

 Any change in the Applicable Margin, Applicable Commitment Fee and the Applicable Letter of Credit Fee Rate shall
be based upon the financial statements and compliance certificates provided pursuant to Sections 8.3.2 [Quarterly Financial Statements] and 8.3.3 [Annual Financial Statements] and shall become effective on the date such financial statements are due
in accordance with Section 8.3.4 [Certificate of the Borrower]. Notwithstanding anything to the contrary contained herein, the Applicable Margin, Applicable Commitment Fee and the Applicable Letter of Credit Fee Rate during the period beginning
with the Seventh Amendment Effective Date and ending upon receipt of the March 31, 2008 compliance certificate shall not be less than the percentage margins applicable to Level III as indicated in the pricing grid on Schedule 1.1(A)
above. 
  

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 SCHEDULE 1.1(B) 
 Commitments of Lenders and Addresses for Notices to Lenders 
 Part 1 - Commitments of Lenders and
Addresses for Notices to Lenders 
  

									
	 Lender
	  	Amount of Commitment
for Revolving Credit Loans	  	Ratable Share	 
	Name:	  	Amegy Bank National Association	  	$	12,000,000	  	2.000000000	%
	Address:	  	Suite 404	  			  		
		  	4400 Post Oak Parkway	  			  		
		  	 Houston, Texas 77027
  
	  			  		
	Attention:	  	W. Bryan Chapman	  			  		
	Telephone:	  	(713) 232-2026	  			  		
	Telecopy:	  	(713) 561-0345	  			  		
	Email:	  	 bchapman@swbanktx.com
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	Suite 404	  			  		
		  	4400 Post Oak Parkway	  			  		
		  	 Houston, Texas 77027
  
	  			  		
	Attention:	  	Dana Chargois	  			  		
	Telephone:	  	(713) 232-6395	  			  		
	Telecopy:	  	(713) 693-7467	  			  		
	Email:	  	dana.chargois@swbanktx.com	  			  		
				
	Name:	  	Bank of America	  	$	48,500,000	  	8.083333333	%
	Address:	  	IL-231-10-35	  			  		
		  	231 S La Salle Street	  			  		
		  	 Chicago, IL 60604
  
	  			  		
		  	Attn: Adam Fey	  			  		
		  	312-828-1462	  			  		
		  	312-974-4970 (fax)	  			  		
		  	adam.h.fey@bankofamerica.com	  			  		
			
	Administrative Contact	  			  		
	Address:	  	MA5-100-10-01	  			  		
		  	100 Federal Street	  			  		
		  	Boston, Massachusetts 02110	  			  		
				
	Attention:	  	Bukola Ajanaku	  			  		
	Telephone:	  	(617) 434-3340	  			  		
	Telecopy:	  	(617) 434-7559	  			  		
	Email:	  	bukola.o.ajanaku@bankofamerica.com	  			  		

  

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	 Lender
	  	Amount of Commitment
for Revolving Credit Loans	  	Ratable Share	 
	Name:	  	BNP Paribas	  	$	46,000,000	  	7.666666667	%
	Address:	  	Suite 3100	  			  		
		  	1200 Smith Street	  			  		
		  	 Houston, Texas 77002
  
	  			  		
	Attention:	  	Mark Cox	  			  		
	Telephone:	  	(713) 982-1100	  			  		
	Telecopy:	  	 (713) 659-6915
  
	  			  		
	Loan Operations	  			  		
	Address:	  	919 Third Avenue	  			  		
		  	 New York, New York 10022
  
	  			  		
	Primary Contact:	  			  		
	Attention:	  	Tammy Papadeas	  			  		
	Telephone:	  	(212) 471-6361	  			  		
	Telecopy:	  	(212) 726-8009	  			  		
	Email:	  	 tammy.papadeas@americas.bnpparibas.com
  
	  			  		
	Secondary Contact:	  			  		
	Attention:	  	Cheryl Guerra	  			  		
	Telephone:	  	(212) 471-6331	  			  		
	Telecopy:	  	(212) 726-8009	  			  		
	Email:	  	 cheryl.guerra@americas.bnpparibas.com
  
	  			  		
	Name:	  	Branch Banking and Trust Company	  	$	38,000,000	  	6.333333333	%
	Address:	  	233 Wyndale Road	  			  		
		  	 Abingdon, Virginia 24210
  
	  			  		
	Attention:	  	Hugh Ferguson	  			  		
	Telephone:	  	(276) 739-7955	  			  		
	Telecopy:	  	(276) 739-7958	  			  		
	Email:	  	 wferguson@bbandt.com
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	233 Wyndale Road	  			  		
		  	 Abingdon, Virginia 24210
  
	  			  		
	Attention:	  	Suzanne Lee	  			  		
	Telephone:	  	(276) 739-7950	  			  		
	Telecopy:	  	(276) 739-7958	  			  		
	Email:	  	 jslee@bbandt.com
  
	  			  		
	Name:	  	Comerica Bank	  	$	24,000,000	  	4.000000000	%
	Address:	  	910 Louisiana, Suite 410	  			  		
		  	 Houston, Texas 77002
  
	  			  		
	Attention:	  	Huma Vadgama	  			  		
	Telephone:	  	(713) 220-5615	  			  		
	Telecopy:	  	(713) 220-5651	  			  		
	Email:	  	 hvadgama@comerica.com
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	39200 Six Mile Road	  			  		
		  	 Livonia, Michigan 48152
  
	  			  		
	Attention:	  	Anna L. Cheney	  			  		
	Telephone:	  	(734) 632-3052	  			  		
	Telecopy:	  	(734) 632-2993	  			  		
	Email	  	anna_l_cheney@comerica.com	  			  		

  

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	 Lender
	  	Amount of Commitment
for Revolving Credit Loans	  	Ratable Share	 
	Name:	  	Fortis Capital Corp.	  	$	30,000,000	  	5.000000000	%
	Address:	  	Suite 1400	  			  		
		  	15455 North Dallas Parkway	  			  		
		  	 Addison, Texas 75001
  
	  			  		
	Attention:	  	Casey Lowary	  			  		
	Telephone:	  	(214) 953-9308	  			  		
	Telecopy:	  	(214) 754-5981	  			  		
	Email:	  	 casey.lowary@fortiscapitalusa.com
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	            
                            	  			  		
		  	             
                            
  
	  			  		
	Attention:	  	Sharon Hill-Bryant	  			  		
	Telephone:	  	(203) 705-5792	  			  		
	Telecopy:	  	(203) 705-5898	  			  		
	Email:	  	 sharon.hill-bryant@fortiscapital.com
  
	  			  		
	Name	  	JP Morgan Chase Bank, N.A.	  	$	32,500,000	  	5.416666667	%
	Address:	  	Mail Stop: TX2-4375	  			  		
		  	910 Travis Street	  			  		
		  	 Houston, Texas 77002
  
	  			  		
	Attention:	  	Jeanie Gonzalez	  			  		
	Telephone:	  	(713) 751-6174	  			  		
	Telecopy:	  	(713) 751-3982	  			  		
	Email:	  	 jeanie_gonzalez@bankone.com
  
	  			  		
	Loan Operations	  			  		
	Address:	  	Suite IL1-0010	  			  		
		  	131 S. Dearborn - 5th Floor	  			  		
		  	 Chicago, Illinois 60603
  
	  			  		
	Attention:	  	Victor Perez	  			  		
	Telephone:	  	(312) 385-7066	  			  		
	Telecopy:	  	(312) 385-7095	  			  		
	Email:	  	 victor_perez@bankone.com
  
	  			  		
	Name:	  	PNC Bank, National Association	  	$	55,000,000	  	9.166666667	%
	Address:	  	One PNC Plaza	  			  		
		  	249 Fifth Avenue	  			  		
		  	 Pittsburgh, Pennsylvania 15222
  
	  			  		
	Attention:	  	Richard C. Munsick	  			  		
	Telephone:	  	(412) 762-4299	  			  		
	Telecopy:	  	 (412) 762-2571
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	Firstside Center, 4th Floor	  			  		
		  	500 First Avenue	  			  		
		  	 Pittsburgh, Pennsylvania 15219
  
	  			  		
	Attention:	  	Rini Davis	  			  		
	Telephone:	  	(412) 762-7638	  			  		
	Telecopy:	  	(412) 762-8672	  			  		
	Email:	  	rini.davis@pncbank.com	  			  		

  

 17 

									
	 Lender
	  	Amount of Commitment
for Revolving Credit Loans	  	Ratable Share	 
	Name:	  	Royal Bank of Canada	  	$	55,000,000	  	9.166666667	%
	Address:	  	5700 Williams Tower	  			  		
		  	2800 Post Oak Boulevard	  			  		
		  	 Houston, Texas 77056
  
	  			  		
	Attention:	  	Jason York	  			  		
	Telephone:	  	(713) 403-5679	  			  		
	Telecopy:	  	(713) 403-5624	  			  		
	Email:	  	 jason.york@rbccm.com
  
	  			  		
	Operations	  		  			  		
	Address:	  	One Liberty Plaza, 3rd Floor	  			  		
		  	 New York, New York 10006
  
	  			  		
	Attention:	  	Compton Singh	  			  		
	Telephone:	  	(212) 428-6332	  			  		
	Telecopy:	  	(212) 428-2372	  			  		
	Email:	  	 compton.singh@rbccm.com
  
	  			  		
	Name:	  	Société Générale	  	$	46,000,000	  	7.666666667	%
	Address:	  	1111 Bagby, Suite 2020	  			  		
		  	 Houston, Texas 77002
  
	  			  		
	Attention:	  	Elena Robciuc	  			  		
	Telephone:	  	(713) 759-6316	  			  		
	Telecopy:	  	(713) 650-0824	  			  		
	Email:	  	 elena.robciuc@sgcib.com
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	560 Lexington Avenue	  			  		
		  	 New York, New York 10022
  
	  			  		
	Attention:	  	Nancy Kui	  			  		
	Telephone:	  	(212) 278-6164	  			  		
	Telecopy:	  	(212) 278-7490	  			  		
	Email:	  	 nancy.kui@sgcib.com
  
	  			  		
	Name:	  	SunTrust Bank	  	$	48,500,000	  	8.083333333	%
	Address:	  	10th Floor; Mail Code: 1929	  			  		
		  	303 Peachtree Street	  			  		
		  	 Atlanta, Georgia 30308
  
	  			  		
	Attention:	  	Joe McCreery	  			  		
	Telephone:	  	(404) 532-0274	  			  		
	Telecopy:	  	(404) 827-6270	  			  		
	Email:	  	 joe.mccreery@suntrust.com
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	10th Floor; Mail Code: 1929	  			  		
		  	303 Peachtree Street	  			  		
		  	 Atlanta, Georgia 30308
  
	  			  		
	Attention:	  	Tina Marie Edwards	  			  		
	Telephone:	  	(404) 588-8660	  			  		
	Telecopy:	  	(404) 230-1940	  			  		
	Email:	  	tinamarie.edwards@suntrust.com	  			  		

  

 18 

									
	 Lender
	  	Amount of Commitment
for Revolving Credit Loans	  	Ratable Share	 
	Name:	  	Wachovia Bank, N.A.	  	$	52,500,000	  	8.750000000	%
	Address:	  	Mailcode: VA7440	  			  		
		  	201 S. Jefferson Street	  			  		
		  	 Roanoke, Virginia 24011
  
	  			  		
	Attention:	  	Jonathan R. Richardson	  			  		
	Telephone:	  	(540) 563-7691	  			  		
	Telecopy:	  	(540) 563-6320	  			  		
	Email:	  	 jonathan.richardson@wachovia.com
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	Mailcode: NC1183	  			  		
		  	201 S. College Street	  			  		
		  	 Charlotte, NC 28244-0002
  
	  			  		
	Attention:	  	Roshenna Smith	  			  		
	Telephone:	  	(704) 374-6171	  			  		
	Telecopy:	  	(704) 715-0099	  			  		
	Email:	  	 roshenna.smith@wachovia.com
  
	  			  		
	Name:	  	BMO Capital Markets Financing, Inc.	  	$	24,000,000	  	4.000000000	%
	Address:	  	700 Louisiana, Suite 4400	  			  		
		  	 Houston, TX 77002
  
	  			  		
	Attention:	  	Gumaro Tigerina	  			  		
	Telephone:	  	(713) 546-9744	  			  		
	Telecopy:	  	(713) 223-4007	  			  		
	Email:	  	 gumaro.tigerina@bmo.com
  
	  			  		
	Operations Contact	  			  		
	Address:	  	1st Canadian Place, 19th Floor	  			  		
		  	Toronto, Ontario Canada	  			  		
		  	 M5X 1AA
  
	  			  		
	Attention:	  	 Maria Tan
	  			  		
	Telephone:	  	 (416) 867-6983
	  			  		
	Telecopy:	  	 (416) 867-4050
	  			  		
	Email:	  	 maria.tan@bmo.com
  
	  			  		
	Name:	  	Bank of Oklahoma, N.A.	  	$	24,000,000	  	4.000000000	%
	Address:	  	One Williams Center, 8th Floor	  			  		
		  	 Tulsa, OK 74172
  
	  			  		
	Attention:	  	Jason B. Webb	  			  		
	Telephone:	  	(918) 588-6771	  			  		
	Telecopy:	  	(918) 588-6880	  			  		
	Email:	  	 j.webb@bokf.com
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	One Williams Center, 8th Floor	  			  		
		  	 Tulsa, OK 74172
  
	  			  		
	Attention:	  	 Julie Elliott
	  			  		
	Telephone:	  	 (918) 588-6096
	  			  		
	Telecopy:	  	 (918) 588-6880
	  			  		
	Email:	  	jelliott@bokf.com	  			  		

  

 19 

									
	 Lender
	  	Amount of Commitment
for Revolving Credit Loans	  	Ratable Share	 
	Name: Commerce Bank, N.A.	  	$	30,000,000	  	5.000000000	%
	Address: 2005 Market Street, 2nd floor	  			  		
	Philadelphia, PA 19103	  			  		
	Attention: Gary R. Martz	  			  		
	Telephone: 215.282.2799	  			  		
	Telecopy: 215.282.4032	  			  		
	 Email: gary.martz@yesbank.com
  
	  			  		
	Administrative Contact	  			  		
	Address: 6000 Atrium Way, Mt. Laurel, NJ 08054	  			  		
	Attention: Alison Wertz	  			  		
	Telephone: 856.533.4683	  			  		
	Telecopy: 856.533.4879	  			  		
	 Email: Investor.Processing@yesbank.com
  
	  			  		
	Samuel B. Miles, IV, Vice President	  			  		
	Commerce Bank, N.A.	  			  		
	2059 Springdale Road	  			  		
	Cherry Hill, NJ 08003	  			  		
	856.470.5204- direct dial	  			  		
	 856.470.5212 - fax
 smiles@yesbank.com
  
	  			  		
	Name:	  	UBS Loan Finance LLC	  	$	10,000,000	  	1.666666667	%
	Address:	  	677 Washington Boulevard	  			  		
		  	 Stamford, CT 06901
  
	  			  		
	Attention:	  	Iris Choi	  			  		
	Telephone:	  	(203) 719-0678	  			  		
	Telecopy:	  	(203) 719-3888	  			  		
	Email:	  	 iris.choi@ubs.com
  
	  			  		
	Name:	  	Union Bank of California, N.A.	  	$	24,000,000	  	4.000000000	%
	Address:	  	Energy Capital Services	  			  		
		  	445 S. Figueroa Street, 15th Floor	  			  		
		  	 Los Angeles, CA 90071
  
	  			  		
	Attention:	  	Robert Olson	  			  		
	Telephone:	  	(213) 236-7407	  			  		
	Telecopy:	  	(213) 236-4096	  			  		
	Email:	  	 robert.olson@uboc.com
  
	  			  		
	Administrative Contact	  			  		
	Address:	  	Energy Capital Services	  			  		
		  	445 S. Figueroa Street, 15th Floor	  			  		
		  	 Los Angeles, CA 90071
  
	  			  		
	Attention:	  	Jonathan Bigelow	  			  		
	Telephone:	  	[(213) 236-424]	  			  		
	Telecopy:	  	(213) 236-4096	  			  		
	Email:	  	 jonathan.bigelow@uboc.com
  
	  			  		
		  	 TOTAL
	  	$	600,000,000	  	100	%

  

 20Amendment to Exclusive Supply Agreement, dated April 8, 2008

 Exhibit 10.112 
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 Final Draft 
  
  
 AMENDMENT TO EXCLUSIVE SUPPLY
AGREEMENT 
  
  
 between 
 Norstel AB 
 and 
 Charles & Colvard, Ltd 

 REDACTED – OMITTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE COMMISSION PURSUANT TO RULE

 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 Table of Contents 
  

					
	Amendment	  	3
	Parties	  	3
	Background	  	3
	1.	  	Purchase and sale of SiC	  	3
	2.	  	Repayment of the loan	  	4
	3.	  	Terms and conditions of purchase	  	4
	4.	  	Changes	  	4
	5.	  	Headings	  	5
	6.	  	Governing law and disputes	  	5

 Appendices: 
 Appendix 1 Exclusive Supply Agreement 
 Appendix 2 Exhibit B PRICING AND PURCHASE QUANTITIES 
  

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 AMENDMENT 
 PARTIES 
  

	A.	Norstel AB, 556672-5346, Ramshällsvägen 15, SE-602 38 Norrköping, Sweden, (“Norstel”), and 

  

	B.	Charles & Colvard, 300 Perimeter Park, Suite A, Morrisville, North Carolina 27560, USA, (“C&C”) 

 The Parties have entered into the following amendment (the “Amendment”) governing certain amendments to an existing Exclusive Supply Agreement dated
14 February 2005, (the “Agreement”). All terms and definitions used in the Agreement shall, unless otherwise stated herein, have the same meaning in this Amendment. 
 This Amendment replaces the amendment dated 7 March 2007 in its entirety. 
 BACKGROUND 
 The Parties have mutually agreed to execute this Amendment due to an update of Norstel’s delivery schedule and capability as of the date of this Amendment and due to
C&C’s wish to limit its purchase of raw material. 
  

	1.	PURCHASE AND SALE OF SIC 

  

	1.1	The Parties have agreed that all dates and time periods related to purchase and sale of SiC in the Agreement shall be revoked, unless expressly stated herein in this Amendment.
Purchased quantities and their pricing are based on Norstel’s ability to deliver quantities with acceptable quality to C&C, as set out on the revised Exhibit B to the Agreement, which has been attached herein as Appendix 1 to this
Amendment, and supersedes in its entirety the prior Exhibit B. 

  

	1.2	Norstel has completed the Phase 2 deliveries in the Agreement, and continues to deliver quantities to C&C corresponding to Phase 3 in the Agreement. 

  

	1.3	Upon reaching the aggregate amount of Useable Material according to each Phase in Appendix 2, Parties will start the next Phase deliveries. 

  

	1.4	 The Initial Term of this Agreement as provided in Section 4.1 of the Agreement is hereby amended and the Initial Term shall be extended through
September 26, 2011. As defined in section 4.2 of the agreement dated February 15, 2005 C&C shall have an option to extend this agreement for one (1) additional term of four (4)

  

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years. The commitment of C&C to purchase material from Norstel continues until (i) the total aggregate amount of ***** grams of Useable Material and
respective invoicing of an aggregate amount of $7,913,144 has been consummated between the Parties, or (ii) on September 26, 2011, whichever occurs first. 

  

	2.	REPAYMENT OF THE LOAN 

  

	2.1	Norstel and C&C acknowledge that loan repayments started in 2007 and that the outstanding amount as of 31 December 2007 was $365,390.39. Norstel shall, for deliveries of
SiC to C&C starting January 1, 2007, repay such portion of the Loan as a 20% deduction of the cash payments invoiced to C&C and actually paid by C&C, in the aggregate amount up to the 400,000 USD total of the Loan. For deliveries of
SiC to C&C made after October 1, 2007, Norstel shall repay such portion of the Loan as a 35% deduction. For deliveries of SiC to C&C made after March 1, 2008, Norstel shall repay such portion of the Loan as a 30% deduction. Upon
the termination of this Agreement (including additional terms) due to Norstel’s breach, any portion of the Loan remaining unpaid shall be immediately due and payable to C&C. The Loan repayments described above shall be the only repayments
required to be made by Norstel. 

  

	3.	SPECIFICATIONS 

  

	3.2	Exhibit A to the Agreement is amended to delete the last two sentences under the paragraph entitled “Color and Tone of acceptable material” and to replace it with the
following sentences: “Boule A686, kept by C&C, is the agreed color/tone master boule. It is graded as *****. Deliveries from Norstel are evaluated against this master boule. Boule A703 is kept by Norstel, and used as an indicative
color/tone master boule. 

  

	4.	TERMS AND CONDITIONS OF PURCHASE 

  

	4.1	Norstel shall invoice C&C after the completion of the assessment of useable material by C&C as set out in Section 2.2 of the Agreement. Payment of each invoice is due
within ten (10) days. 

  

	5.	CHANGES 

  

	5.1	Changes in and additions to this Amendment must be in writing and signed by the Parties to be binding. 

  

	5.2	For avoidance of doubt unless otherwise expressly stated in this Amendment, the Agreement shall have a continued and unchanged applicability. 

  

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	6.	HEADINGS 

  

	6.1	The division of the Amendment into different sections and the inclusion of headings will not affect the interpretation of this Amendment. 

  

	7.	GOVERNING LAW AND DISPUTES 

  

	7.1	This Amendment shall be construed in accordance with and be governed by the laws of Sweden. 

  

	7.2	Any dispute, controversy or claim arising out of or in connection with this Amendment, or the breach, termination or invalidity thereof, shall be finally settled by arbitration
administered by the Arbitration Institute of the Stockholm Chamber of Commerce (the SCC Institute). 

  

	7.3	The Rules for Expedited Arbitrations of the Arbitration Institute of the Stockholm Chamber of Commerce shall apply, unless the SCC Institute, taking into account the complexity of
the case, the amount in dispute and other circumstances, determines, in its discretion, that the Rules of the Arbitration Institute of the Stockholm Chamber of Commerce shall apply. In the latter case, the SCC Institute shall also decide whether the
arbitral tribunal shall be composed of one or three arbitrators. 

  

	7.4	The Place of Arbitration shall be Stockholm. The arbitration proceedings shall be conducted in the English language, unless otherwise agreed by the parties involved.

  

	7.5	The Amendment in this Section 7 to submit to arbitration and the provisions on the procedure of such arbitration contained in the sections above shall not apply in relation to
instances where a party in dispute seeks injunctive relief. 

  
  
  

					
	NORSTEL AB	 		 	CHARLES & COLVARD, LTD
			
	 /s/ Iain Jackson 4/3/08
	 		 	 /s/ James R. Braun 4/8/08

	Iain Jackson	 		 	James R. Braun
	CEO	 		 	Vice President – Finance and CFO

  

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 Appendix 1 of the Amendment 
 EXCLUSIVE SUPPLY AGREEMENT 
 THIS EXCLUSIVE SUPPLY AGREEMENT (“Agreement”) is made and
entered into effective as of the 14th day of February, 2005, by and between Jesperator AB (“Jesperator”), an entity organized under the laws of Sweden having its address at Box 255, 178 23 Ekerö, Sweden, with telefax +46 8 560 34354,
and Charles & Colvard, Ltd. (“C&C”), a North Carolina corporation having its address at 300 Perimeter Park, Suite A, Morrisville, North Carolina 27560, telefax +1 919 468 5052. 
 Recitals 
 WHEREAS, Jesperator is engaged in the
business of developing, manufacturing and selling silicon carbide material (SiC) for various applications and desires to supply C&C with SiC; and 
 WHEREAS, C&C manufactures and markets gemstones fabricated from SiC and desires to purchase SiC from Jesperator; and 
 WHEREAS, Jesperator and C&C desire to enter into an Exclusive Supply and Loan Agreement for Jesperator to supply C&C with SiC and C&C agrees to purchase SiC from Jesperator as provided herein; 

NOW, THEREFORE, the parties hereto, in consideration of the foregoing premises and the covenants and undertakings herein contained, mutually agree as
follows: 
 1. Exclusivity. During the Initial Term and any Additional Term (as defined below) of this Agreement, Jesperator (including any affiliates
of Jesperator) shall not sell SiC in any form to any customer other than C&C if Jesperator has knowledge or has reason to believe that such customer, or its customers, intend to use such material for the purpose of fabricating, distributing or
selling faceted jewels or gemstones. Upon termination of this Agreement pursuant to Section 4.3 hereof due to a material breach by Jesperator, Jesperator (including any affiliates of Jesperator) agrees that for the period equal to the Initial
Term and the Additional Term, Jesperator shall not sell SiC to any customer if Jesperator has knowledge or has reason to believe that such customer, or its customers, intend to use such material for the purpose of fabricating, distributing or
selling faceted jewels or gemstones. This condition, however, is only valid in case C&C continues to stay in the business of fabricating, distribution and selling faceted jewels or gemstones made from SiC and is only valid to the extent it is
not in violation of any applicable law in Sweden or in any other relevant jurisdiction. 
 2. Purchase and Sale of SiC 
 2.1 Minimum Purchase and Sale Quantities. (a) Minimum Quantities. C&C shall purchase from Jesperator and Jesperator shall sell to C&C
SiC meeting the specifications for useable material set out on Exhibit A, in the minimum quantities (“Minimum Quantities”) and at the prices set out on Exhibit B during the periods set forth therein. (b) Minimum Quantities Subject to
Capacity. If and to the extent that Jesperator has the production capacity to deliver up to the minimum quantities subject to capacity set out on Exhibit B (the “Minimum Quantities Subject to Capacity”), C&C shall purchase from
Jesperator and Jesperator shall sell to C&C such Minimum Quantities Subject to Capacity of SiC meeting the specifications for useable material set out on Exhibit A during the periods set forth in Exhibit B. (c) Minimum Quantities Subject to
Capacity Commencing September 1, 2006. Commencing September 1, 2006, such Minimum Quantities Subject to Capacity shall, subject to Jesperator’s production capacity, be amount set forth in Exhibit B. No later than 90 days prior to the

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end of each calendar quarter, Jesperator shall inform C&C of its expected production capacity of SiC meeting the specifications set forth on Exhibit A
for the upcoming quarter. 
 2.2 Useable Material Assessment. Within 10 days of receipt of SiC from Jesperator, C&C shall grade
all SiC received from Jesperator according to the specifications set out on Exhibit A. C&C shall provide regular feedback to Jesperator concerning the grading of all SiC. Upon Jesperator’s request and at Jesperator’s expense, SiC not
meeting the minimum specifications for useable material shall be returned to Jesperator for analysis. All SiC delivered to C&C and not returned to Jesperator at its expense shall be the property of C&C. 
 3. Loan to Purchase HTCVD Reactor and Equipment. 
 3.1
Loan. Concurrent with the execution of this Agreement and as a condition precedent to its effectiveness, C&C shall loan to Jesperator the sum of 400,000 USD (the “Loan”), to be used and repaid by Jesperator in accordance with
the terms of this Agreement. The Loan shall not bear interest. 
 3.2 Use of Proceeds of the Loan. Jesperator shall use the proceeds
of the Loan to acquire an HTCVD Reactor (“Reactor”) and equipment to install and operate Reactor (“Equipment”). If the cost of Reactor and Equipment exceed 400,000 USD, Jesperator shall be responsible for such additional purchase
price from its own funds. 
 3.3 Repayment of the Loan. Jesperator shall, for deliveries of SiC to C&C made after
December 31, 2005, repay such portion of the Loan as a 35% deduction of the cash payments invoiced to C&C and actually paid by C&C, in the aggregate amount up to the 400,000 USD total of the Loan. Upon the termination of this Agreement
(including additional terms) due to Jesperator’s breach, any portion of the Loan remaining unpaid shall be immediately due and payable to C&C. The Loan repayments described above shall be the only repayments required to be made by
Jesperator. 
 3.4 Default in Repayment. Upon default by Jesperator in repayment of the Loan, which default exists on or following
June 1, 2006 and is not cured within ninety (90) days of written notice thereof by C&C to Jesperator, C&C may declare the total unpaid balance due and payable, or may, in lieu of further repayment of the loan convert any unpaid
portion of the Loan into equity in Jesperator pursuant to Section 3.5 below. 
 3.5 Conversion to Equity. In the event C&C
elects to convert the unpaid portion of the Loan to equity pursuant to Section 3.4 above, a new selected issue of shares shall be directed to C & C by Jesperator whereby C & C shall subscribe for such shares and pay the subscription
price by way of setting off in full the unpaid portion of the Loan against the issue price. The number of shares of Common Stock of Jesperator (“Common Stock”) to be issued shall be calculated according to the following formula:

  

													
	 X
	  	=	 	 DO
	  		  		  		  	
	SO	  		 	CV	  		  		  		  	

  

					
	Where:	  	 
			
	X	  	=	  	number of shares of Common Stock to be issued
			
	SO	  	=	  	Number of shares of Common Stock outstanding
			
	DO	  	=	  	Principal amount of the Loan outstanding
			
	CV	  	=	  	Attributed equity valuation of Jesperator based upon price in most recent private placement or the public bid price for the Common Stock at the end of the month in which such election occurs,
if the Common Stock is publicly traded. If there has been no private placement or public offering of Common Stock, then CV shall equal

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		  		  	10,000,000 Euro, increased by any capital contribution made into Jesperator after the date of this Agreement.

 Any election to convert the unpaid portion
of the Loan to equity shall be made by written notice to Jesperator, delivered no later than the 20th of a calendar month; the pricing shall be made
on the last business day of such month at Jesperator’s notice address, and the shares issued as soon thereafter as practicable. 
 3.6
Restrictions on C&C’s Ownership of Equity Following Conversion of Debt. C&C shall not sell, mortgage, transfer, assign or otherwise encumber the shares issued as a result of the conversion of the Loan to Common Stock for a period
of two (2) years following issuance; provided, however, that in the event Jesperator or its shareholders enters into any merger, stock or asset sale resulting in the transfer of control in Jesperator or its principal business during such
period, the shares of Common Stock owned by C&C shall be entitled to participate in any such transaction equally with other shares of Common Stock. Jesperator or its designated party may, at Jesperator’s option, repurchase its Common Stock
issued pursuant to Section 3.5 at any time within six months of such purchase by C&C at a price equal to the full amount of the unpaid Loan. In addition, C&C agrees that until July 1, 2008, in the event that any shareholder of
Jesperator owning more than 10% of its Common Stock enters into any agreement restricting the sale or transfer of its shares in connection with a private placement or public offering of the Common Stock of Jesperator, shares of the Common Stock
owned by C&C shall be subject to the same restrictions and conditions. Any share certificate for Common Stock issued to C&C may bear a legend describing these restrictions. 
 4. Term and Termination 
 4.1 Initial Term. The term of this Agreement shall extend through
February 28, 2008 unless sooner terminated in accordance with Section 4.3 or by written mutual consent of both parties. 
 4.2
Additional Term. C&C shall have an option to extend this Agreement for one (1) additional term of four (4) years. Such option shall become exercisable at any time by written notice given no less than ninety (90) days prior
to expiration of the initial term. 
 4.3 Termination. In the event of a material breach by either party under this Agreement of any
obligation to the other party, the other party may terminate this Agreement upon written notice if the breach is not cured within ninety (90) days after giving written notice to the party in breach setting out the nature of the breach in
reasonable detail. Sections 1, 3.3, 3.4, 3.5, 3.6, 4.3, 5.8, 6, 7.7, 7.8 and 7.9 shall survive any termination of this Agreement. 
 5. Terms and
Conditions of Purchase 
 5.1 Standard Orders. C&C agrees to accept and purchase and Jesperator shall sell and ship such
minimum monthly quantities of SiC in the indicated periods meeting the specifications as provided in the Agreement. C&C shall submit a detailed specification of types and quantities at least 30 days before the start of the month in question

 5.2 Additional Orders. C&C shall submit any additional orders for SiC exceeding the minimum quantities set forth in Exhibit B
at least ninety (90) days prior to the requested shipping date. Subject to the foregoing, Jesperator shall use all reasonable efforts to ship the requested SiC on or before the date requested by C&C in its order. 
 5.3 Invoicing and Payment. Jesperator shall invoice C&C upon shipment of SiC. Payment of each invoice is due within thirty (30) days
after the completion of the assessment of useable material by C&C as set out in Section 2.2. 

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 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 5.4 Taxes or Duties. C&C shall not be liable for any applicable sales, use taxes or other
taxes or duties of any nature imposed by any governmental authority with respect to purchases of SiC under this Agreement. 
 5.5 Shipping
Expenses. All shipping expenses, including insurance against loss or damage in transit, will be invoiced to and paid by Jesperator. Material shall be shipped by Jesperator F.O.B. to any U.S. location designated by C&C. 
 5.6 Force Majeure. Jesperator shall not be liable for or be in default of this Agreement for any delay in delivery or failure to perform due to
strike, lockout, riot, war, fire, act of God, act of terrorism or compliance with any law, regulation, order or direction, whether valid or invalid, of any governmental authority or instrumentality thereof. C&C agrees that such delay in delivery
or failure to perform any part of this Agreement shall not be grounds to terminate or refuse to comply with any provisions hereof and no penalty of any kind shall be effective against Jesperator for such delay or failure; provided, however, that if
such delay or failure extends beyond three (3) months from the originally scheduled date either party may, with written notice to the other, terminate this Agreement without further liability. 
 5.7 Warranty. All standard “material sales grade” products supplied by Jesperator under this Agreement shall conform to the
specifications in Exhibit A, or as may otherwise be agreed in writing by Jesperator and C&C. Non-conforming products as defined in Exhibit A shall be replaced by Jesperator upon return of the defective product, if such product is returned within
90 days after shipment; such replacement shall be C&C’s sole remedy for breach of the foregoing warranty. All scrap material and non-standard products supplied under this Agreement will be supplied “as is”. Except as provided
above, Jesperator makes no warranty of any kind with respect to any material supplied hereunder and disclaims any implied warranties including any warranties of merchantability or fitness for a particular purpose or non-infringement of patent or
similar rights. 
 5.8 Consequential Damages. In no event shall either party be liable to the other for incidental, consequential or
special loss or damages of any kind, however caused, or any punitive damages. 
 5.9 Intellectual Property Rights. C&C warrants
that Jesperator’s proposed method of manufacturing SiC, as disclosed to C&C, does not infringe any intellectual property rights belonging to C&C, and further represents that C&C, without investigation, has no knowledge or
information causing it to believe that such method infringes any intellectual property rights belonging to any third party. C&C further warrants that C&C is licensed for the full term of this Agreement to use, and to permit a third party
manufacturer (including Jesperator), to use the intellectual property rights set forth on Exhibit C for the manufacture of SiC, and agrees to permit Jesperator to do so for the purposes of Jesperator’s performance under this Agreement.
Jesperator represents and warrants that it must use such intellectual property in order to manufacture SiC meeting the specifications set out in this Agreement. Jesperator shall not allow any other party, including affiliates, to use or sublicense
the use of such intellectual property. Any use of such intellectual property rights by any affiliate of Jesperator, or by Jesperator other than to produce SiC for C&C pursuant to this Agreement, is strictly prohibited and shall constitute a
material breach of this Agreement. Other than as disclosed by C&C to Jesperator in documents publicly filed by C&C with the Securities & Exchange Commission, there are no license agreements between C&C and Cree, Inc. C&C
further warrants that to C&C’s knowledge, without investigation, there are no other intellectual property rights of Cree, Inc. licensed to C&C that are applicable to the SiC manufacturing process as used by Jesperator. Jesperator agrees
to indemnify and hold harmless C&C from and against any and all claims, damage or liability (including costs and attorney’s fees) arising from any claim or legal action alleging that intellectual property of Jesperator infringes upon or
violates the intellectual property rights of another. C&C agrees to indemnify and hold harmless Jesperator from and against any and all claims, damage or liability (including costs and 

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 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 
attorney’s fees) arising from any claim or legal action relating to a breach or alleged breach of the warranties made by C&C in this paragraph 5.9.
In the event that either Jesperator or C&C becomes aware of a potential or claimed infringement of the intellectual property rights of third parties, the parties will consult in good faith to determine the means most likely to avoid any adverse
effect on the parties’ performance under this Agreement. 
 6. Mutual Nondisclosure Agreement. 
 Okmetic OYJ and C&C executed a separate Mutual Nondisclosure Agreement on the 4th day of December 2001 (the “MNDA”) and are bound by the terms and
conditions contained therein. Jesperator and C&C hereby agree to be bound by the terms of the MNDA and agree to extend the terms of the MNDA to cover any and all disclosures made in connection with this Agreement. The terms of the MNDA are
hereby incorporated in full into this Agreement by this reference as though set out herein. 
 7. General 
 7.1 Entire Agreement. This Agreement (which includes any Exhibits referenced herein) and the MNDA, constitute the complete and exclusive statement
of the agreement of the parties and supersedes all prior written or oral agreements between the parties concerning the matters covered therein. 
 7.2 Amendment and Waiver. The failure of either party to enforce its rights under this Agreement at any time for any period shall not be construed as a waiver of such rights. It is the intention of the parties that the terms of this
Agreement be controlling over any additional or different terms of any purchase order, confirmation, invoice or similar document, and that any amendment or waiver of any provision of this Agreement shall be effective only if made in writing clearly
stating the intent to amend or waive such provision which is signed by both parties. No waiver by a party of any right or remedy in respect of any occurrence or event on one occasion by either party shall be deemed a waiver of such right or remedy
in respect of such occurrence or event or any other occasion by such party. This Agreement shall not be amended, modified or altered except pursuant to a document signed by both parties. 
 7.3 Affiliates. Neither party shall permit any “Affiliate” of such party (as defined below) to act or fail to take action when such
action or failure to take action, if by the party, would be a breach of this Agreement. For purposes of this Agreement, “Affiliate” of a designated party means any individual, corporation, partnership, limited liability company or other
business entity which controls, is controlled by, or is under common control with the designated party, whether directly or through one or more intermediaries. For purposes of this definition “controlled” and “control” mean
ownership of a controlling interest of the voting capital stock or other interest having voting rights with respect to the election of the board of directors or similar governing authority. 
 7.4 Severability. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof,
and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted. 
 7.5 Assignment.
Neither this Agreement nor any rights hereunder may be assigned by either party without the other party’s prior written consent, which consent shall not be unreasonably withheld, provided any conditions or restrictions on shares of Common Stock
issued by Jesperator to C&C pursuant to Section 3 of this Agreement shall in any event be binding upon any assignee of C&C. Any attempted assignment in violation of this Section 7.5 is void and shall constitute a breach of this
Agreement. This Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns. 

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 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 7.6 Public Announcements. Neither party shall issue any press release or otherwise make any
public announcement concerning this Agreement without the prior consent of the other party, except as may be required by law. Neither party shall use the name of the other party in any advertising, marketing or similar material without the other
party’s prior written consent. 
 7.7 Injunctive Relief. The parties acknowledge and agree that in the event of a breach of the
Agreement, in addition to any other rights and remedies available to it at law or otherwise, the parties shall be entitled to seek equitable relief in the form of a temporary restraining order (“TRO”) from any court of competent
jurisdiction; provided however, that in the event a TRO is obtained, the parties shall request that any hearing on the merits of the dispute shall be stayed pending arbitration of the dispute as provided in Section 7.9. 
 7.8 Governing Law. This Agreement and the performance hereunder shall in all respects be governed by the substantive laws of Sweden without regard
to its conflicts of law rules. The parties expressly exclude the applicability of the United Nations Convention on Contracts for the International Sale of Goods. 
 7.9 Arbitration; Choice of Venue; Consent to Jurisdiction. All disputes arising in connection with this Agreement, including, without limitation, disputes concerning or related to the enforceability of the
arbitration provisions contained herein or as to whether any matter is subject to arbitration pursuant to this Agreement, shall be finally settled under the rules of the Swedish Chamber of Commerce in Stockholm, Sweden, by one or more arbitrators,
appointed in accordance with said rules. Arbitration proceedings will be conducted in English. The award and any order of the arbitrator(s) shall be final and binding on all parties to such arbitration and judgment thereon may be entered in any
court having jurisdiction thereof. Each party consents to the personal and subject matter jurisdiction of the arbitration proceedings as provided herein and waives any defense based upon forum non conveniens or lack of personal or subject matter
jurisdiction. Each party acknowledges, agrees and represents that the provisions contained in Sections 7.8 and 7.9 with respect to governing law, arbitration, choice of venue and jurisdiction, as well as the remaining provisions of this Agreement,
have been negotiated and entered into voluntarily after consultation by each party with its legal counsel and with a full understanding of the business and legal consequences of such provisions and this Agreement. 
 7.10 Notices. All notices under this Agreement shall be in writing and addressed to the other party at the address first set out above or to such
other address as the party may hereafter designate by notice under this Agreement. All notices so addressed shall be deemed given (i) four (4) days after sending by international overnight carrier with receipt confirmation from such
carrier, or (ii) when sent via facsimile if receipt is acknowledged, or (iii) otherwise when actually received. 
 7.11
Conditions. This agreement is subject to closing and funding of the “Jesper” project financing, related to equity investment into Jesperator by financial investors, with the purpose of carrying out the industrialization plan of
Jesperator’s SiC activities. 
 IN WITNESS WHEREOF, the parties have executed this Agreement by and through their duly authorized representatives.

  

									
	JESPERATOR AB	 	 	 	CHARLES & COLVARD, LTD.
					
	By:	 	 /s/ Asko Vehanen
	 		 	By:	 	 /s/ Robert S. Thomas

		 	Asko Vehanen, CEO	 		 		 	Robert S. Thomas, President

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 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 Exhibit A 
 SPECIFICATIONS: 
 A deliverable unit is defined as a slab of 6H SiC material that is 2 or more inches in
diameter cut to a thickness of 4.3mm, or as specified in a separate letter from C&C to Jesperator 30 days prior to the start of each month. The thickness of said slabs will be 3.6mm or 4.3mm or 5.2mm or 6.3mm, or different as may be agreed by
both parties. The material will be graded by C&C raw material graders upon receipt by C&C and classified according to color, tone and defects. Each piece delivered by Jesperator to C&C will have an individualized serial number affixed to
it. During phases 1, 2 and 3 (Exhibit B) Jesperator has an option to deliver 2” diameter products in boules, without slicing into slabs with specified thickness as stated above. 
 Color and Tone of acceptable material: 
 The acceptable color is *****, the acceptable tone is very light
(“10” according to C&C current grading standards). During the phase 1 (Exhibit B), the acceptable tone is also ***** (“20” according to C&C current grading standards) or ***** (“11” according to C&C current
grading standards). It is the goal that at least one (1) boule of material produced during the R&D period will be a color and tone that is lighter than the color/tone of the current master boule used by C&C. This boule will then become
the color/tone master boule that future acceptable production is evaluated against. 
 Defects: 
 SiC that is deemed acceptable according to color and tone will be graded for defects. A defect is any internal inclusion that prevents the material from being used as a
moissanite jewel. The defects will be measured as a percentage of the total piece of material. Reference boule ***** (C&C assigned serial number) delivered to C&C ***** contained ***** defect free material (picture attached). 
 Useable material will be the total gram weight of the acceptable material reduced by the percentage of defects. 
 Price calculation: 
 Grams of acceptable material ×
(1-defect %) = Grams of Useable Material × Price per Gram = Price 
 During the period February 28, 2005 to
February 28, 2006, boules that are at least *****useable will be deemed for price purposes as ***** useable. Commencing March 1, 2006, the actual percentage of useable material shall be used for price purposes and any boules that are
nonconforming product will not be priced. Boules that are not ***** useable but that are not made available for return to Jesperator as nonconforming product will be evaluated for price using the formula above. 
 Nonconforming product: Material shipped to C&C, where the defect-free material fraction is less than ***** of a boule. 

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 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 Exhibit B 
 PRICING AND MINIMUM PURCHASE QUANTITIES 
 General Provisions: 
 Prior to March 1, 2006, any boule containing less than 100% but at least ***** useable material shall be treated as 100% useable material for quantity purchase and
pricing purposes. Commencing March 1, 2006, the price of any boule containing less than 100% useable material, as set forth in Exhibit A shall be adjusted as set forth in Exhibit A. 
 Phase 1: C&C will pay ***** within 10 days of signing this Agreement as a first payment for a five
month ***** Research and Development (R&D) effort by Jesperator that starts March 1, 2005. This effort is to improve color, tone and defect rate of the material. The color of the recently supplied material was acceptable, while the tone was
at the lower end of acceptability. The defect rate was *****. This minimum quality is described in detail under Exhibit A “Specifications”. During this period Jesperator will supply C&C with five samples 2 to 2  1/4 inches in diameter and 5.2mm thick (Phase 1). The second and final ***** R&D payment will be made by C&C within 10 days of
receipt of the fifth material sample. 
 Upon mutual agreement that the sample material generated during the R&D period is of acceptable quality
the companies will designate from the sample material a color/tone master boule for which the useable material of that boule will be the minimum acceptable color/tone of future purchases. Defects will be evaluated on each individual piece of
material. 
 Phase 2: Starting August 1, 2005 C&C will purchase minimum ***** grams and minimum subject to capacity ***** grams of material
per week from Jesperator at ***** per gram with graded boules containing a minimum of ***** of useable material per the specifications in Exhibit A. If the useable portion of the boule is less than ***** of the total weight of the boule and C&C
does not reject the boule as nonconforming product set forth in Exhibit A, then C&C will only pay for the grams of useable material contained within the boule.  
 Phase 3: Starting December 1, 2005, C&C will purchase a minimum ***** grams and minimum subject to capacity ***** grams per week from Jesperator at ***** per gram with each boule containing a minimum
of ***** of useable material. If the useable portion of the boule is less than ***** of the total weight of the boule and C&C does not reject the boule nonconforming product set forth in Exhibit A, then C&C will only pay for the grams of
useable material contained within the boule. 
 Phase 4: Starting April 1, 2006 C&C’s purchases will increase to a minimum ***** grams
and minimum subject to capacity ***** grams per week at ***** per gram of useable material. 
 Phase 5: Starting July 1, 2006 C&C’s
purchases will increase to a minimum ***** grams and minimum subject to capacity ***** grams of per week at ***** per gram of useable material. 
 Phase
6: Starting July 1, 2007, subject to Jesperator having made an industrialization decision and having moved its SiC activities from the current locations to a planned industrial facility C&C will purchase a minimum ***** grams and
minimum subject to capacity of ***** grams per week at a price of ***** per gram of useable material. Should this condition not become valid, delivery conditions as defined in Phase 5 above shall remain in force, until the said condition will be
met. In such case, however, the price of the products will be set at ***** per gram. 

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 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 Additional Term: Should there be an Additional Term, C&C will purchase a minimum ***** grams and a minimum
subject to capacity (subject to possible increase to ***** of C&C’s SiC requirements in any quarter pursuant to Section 2.1 of this Agreement) of ***** grams per week at ***** per gram of useable material. 
  

																	
	 min obligation
	  	 min subject to capacity
	  	 	  	 	  	 	  	 	  	 
	 phase #
	  	 gram/week
	  	 gram/week
	  	duration,
weeks	  	 asp $/g
	  	 sales, $
	  	 tot grams
	  	 start step
	  	comments
	1	  	*****	  	*****	  	21	  	*****	  	*****	  	*****	  	March 2005	  	R&D phase
	2	  	*****	  	*****	  	17	  	*****	  	*****	  	*****	  	Aug. 2005	  	
	3	  	*****	  	*****	  	17	  	*****	  	*****	  	*****	  	Dec. 2005	  	
	4	  	*****	  	*****	  	13	  	*****	  	*****	  	*****	  	April 2006	  	
	5	  	*****	  	*****	  	52	  	*****	  	*****	  	*****	  	July 2006	  	
	6	  	*****	  	*****	  	52	  	*****	  	*****	  	*****	  	July 2007	  	
		  	total steps 1 through 6	  		  	171	  	*****	  	*****	  	*****	  		  	
	7	  	*****	  	*****	  	208	  	*****	  	*****	  	*****	  	July 2008	  	option of
C&C

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 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 Exhibit C 
 IPR RELATED TO SECTION 5.9 
 ***** 

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 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 Appendix 2 of the Amendment 
 EXHIBIT B PRICING AND PURCHASED QUANTITIES 
 General Provisions: 
 During Phases 2, 3, 4 and 5.a any boule containing less than 100% but at least *****% useable material shall be treated as 100% useable material for quantity purchase and
pricing purposes. Commencing Phase 5.b, the price of any boule containing less than 100% Useable Material, as set forth in Exhibit A in the Agreement shall be adjusted as set forth in said Exhibit A. During Phases 3.b, 4 and 5.a, it will be
acceptable to ship boules as whole ingots. 
 Each Phase has an indicative planned date for Phase start and duration. It is understood that C&C will
purchase the quantities herein proportionally per month over the duration of each stated phase; Provided however, it is understood by both Parties, that C&C is contractually obligated to purchase no less than 50%, by dollar volume, of its SiC
requirements in each calendar quarter from another supplier, and subsequent to January 1, 2009 C&C may provide advance notice to Norstel if a modification of the indicated quantity is required to avoid a breach of the C&C contractual
obligation; provided further however, in such event, C&C shall purchase no less than *****% of its SiC requirements in each quarter from Norstel. Such advance notice from C&C must be given a minimum of 12 weeks in advance. In case such
advance notice is given the parties agree to negotiate a new amendment to the Agreement so that the agreed minimum purchase commitment of this Exhibit B is fulfilled. 
 Phase 1: Has been fully completed by the Parties. 
 Phase 2: Has been fully completed by the Parties.

 Phase 3.a: Norstel has shipped ***** grams of Phase 3 deliveries as of 29 Feb 2008. 
 Phase 3.b: C&C will purchase an aggregate amount of ***** grams of Usable Material from Norstel at $***** per gram. 
 Phase 4: C&C will purchase an aggregate amount of ***** grams of Usable Material from Norstel at $***** per gram. 
 Phase 5.a:
C&C will purchase an aggregate amount of ***** grams of Usable Material from Norstel at $***** per gram. 
 Phase 5.b: C&C will purchase an
aggregate amount of ***** grams of Usable Material from Norstel at $***** per gram. 
 Phase 5.c: C&C will purchase an aggregate amount of *****
grams of Usable Material from Norstel at $***** per gram. 
 Phase 6: C&C will purchase an aggregate amount of ***** grams of Usable Material from
Norstel at $***** per gram. 

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 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED, AND IS DENOTED HEREIN BY ***** 
  

 Phase 7: C&C maintains an option to purchase an aggregate amount of ***** grams of Usable Material from
Norstel at $***** per gram. 
  

															
	 Phase #
	  	 Planned Phase start
	  	Planned
duration
(weeks)	  	 Quality limit for 100%
invoicing
	  	 price $/g
	  	sales, $	  	 Usable Material, grams
	  	comments
	1	  	14.2.2005	  		  	N/A	  	*****	  	100,000	  	*****	  	completed
	2	  	1.1.2006	  		  	*****	  	*****	  	103,000	  	*****	  	completed
	3.a	  	9.4.2007	  		  	*****	  	*****	  	138,208	  	*****	  	completed
	3.b	  	1.3.2008	  		  	*****	  	*****	  	45,936	  	*****	  	On-going
	4	  	1.4.2008	  	15	  	*****	  	*****	  	300,300	  	*****	  	
	5.a	  	14.7.2008	  	24	  	*****	  	*****	  	762,300	  	*****	  	
	5.b	  	1.1.2009	  	52	  	*****	  	*****	  	1,501,500	  	*****	  	
	5.c	  	1.1.2010	  	10	  	*****	  	*****	  	399,000	  	*****	  	
	6	  	15.3.2010	  	80	  	*****	  	*****	  	4,562,000	  	*****	  	
	Total	  		  		  		  		  	7,913,144	  	*****	  	
	7	  	26.9.2011	  	208	  	*****	  	*****	  	12,500,000	  	*****	  	C&C
option

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