Document:

2004 Equity Incentive Award Plan

  
 Exhibit 10.16

  
 DESIGN WITHIN REACH, INC. 
 2004 EQUITY INCENTIVE AWARD PLAN 
  
 STOCK OPTION AGREEMENT 
  
 THIS AGREEMENT, dated as of the Grant Date set forth on Exhibit A hereto, (the terms of which are hereby incorporated by reference and made a part
of this Agreement) is made by and between Design Within Reach, Inc., a Delaware corporation, hereinafter referred to as the “Company,” and the Employee or consultant of the Company, or a Subsidiary of the Company, identified on
Exhibit A and hereinafter referred to as “Associate.” 
  
 WHEREAS, the Company wishes to afford the Associate the opportunity to purchase shares of its Stock, par value $0.001 per share; and 
  
 WHEREAS, the Company wishes to carry out the Design Within Reach, Inc. 2004 Equity Incentive Award Plan (the
“Plan”) (the terms of which are hereby incorporated by reference and made a part of this Agreement); and 
  
 WHEREAS, the Committee appointed to administer the Plan has determined that it would be to the advantage and best interest of the Company and its
stockholders to grant the Option provided for herein to the Associate as an inducement to enter into or remain in the service of the Company or its Subsidiaries and as an incentive during such service, and has advised the Company thereof and
instructed the undersigned officer to issue said Option. 
  
 NOW,
THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1 General. Wherever the following terms are used in this Agreement they shall have the meanings specified below, unless the context clearly
indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan. 
  
 1.2 Director. “Director” shall mean a member of the Board. “Director” shall include both a member of the Board who is an
Employee and a “Non-Employee Director” (as defined in the Plan). 
  
 1.3 Exercise Notice. “Exercise Notice” shall mean a written notice to the Company, substantially in the form attached hereto as Exhibit B (or such other form as the Committee shall approve),
stating that the Option or a portion of the Option is exercised. 
  
 1.4 Grant Date. “Grant Date” shall mean the date of grant set forth on Exhibit A. 
  
 1.5 Secretary. “Secretary” shall mean the Secretary of the Company. 
  

 1.6 Termination of Service. “Termination of Service” shall mean the time when the
service relationship (whether as an Employee or a consultant) between the Associate and the Company or any Subsidiary is terminated for any reason, with or without Cause, including, but not by way of limitation, a termination by resignation,
discharge, death or Disability; but excluding (a) a termination where there is a simultaneous reemployment or continuing employment or consultancy of the Associate by the Company or any Subsidiary or a parent corporation thereof (within the meaning
of Section 422 of the Code), (b) at the discretion of the Committee, a termination which results in a temporary severance of the employee-employer relationship, and (c) at the discretion of the Committee, a termination which is followed by the
simultaneous establishment of a consulting relationship by the Company or a Subsidiary with the former employee. The Committee, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Service,
including, but not by way of limitation, the question of whether a Termination of Service resulted from a discharge for Cause, and all questions of whether particular leaves of absence constitute Terminations of Service; provided,
however, that, if this Option is designated as an Incentive Stock Option, unless otherwise determined by the Administrator in its discretion, a leave of absence, change in status from an Employee to an independent contractor or other change
in the employee-employer relationship shall constitute a Termination of Service if, and to the extent that, such leave of absence, change in status or other change interrupts employment for the purposes of Section 422(a)(2) of the Code and the then
applicable regulations and revenue rulings under said Section. Notwithstanding any other provision of the Plan or this Agreement, the Company or any Subsidiary has an absolute and unrestricted right to terminate the Associate’s employment
and/or consultancy at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company and the Associate. 
  
 ARTICLE II 
  
 GRANT OF OPTION 
  
 2.1 Grant of Option. In consideration of the Associate’s
agreement to remain in the employ of the Company or its Subsidiaries and for other good and valuable consideration, effective as of the Grant Date, the Company irrevocably grants to the Associate the Option to purchase any part or all of an
aggregate of the number of shares of Stock set forth on Exhibit A, upon the terms and conditions set forth in this Agreement. Unless designated as a Non-Qualified Stock Option on Exhibit A, the Option shall be an Incentive Stock Option
to the maximum extent permitted by law. 
  
 2.2 Purchase
Price. The purchase price of the shares of Stock subject to the Option per share shall be as set forth on Exhibit A hereto, without commission or other charge; provided, however, that if this Option is designated as an
Incentive Stock Option the price per share of the shares subject to the Option shall not be less than the greater of (i) 100% of the Fair Market Value of a share of Stock on the Grant Date, or (ii) 110% of the Fair Market Value of a share of Stock
on the Grant Date in the case of an Associate then owning (within the meaning of Section 424(d) of the Code) more than 10% of the total combined voting power of all classes of stock of the Company or any Subsidiary or parent corporation thereof
(within the meaning of Section 422 of the Code). 
  

 2.3 Consideration to the Company. In consideration of the granting of the Option by the Company,
the Associate agrees to render faithful and efficient services to the Company or any Subsidiary, with such duties and responsibilities as the Company shall from time to time prescribe. Nothing in the Plan or this Agreement shall confer upon the
Associate any right to continue in the employ of the Company or any Subsidiary or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which are hereby expressly reserved, to discharge the Associate at any time
for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the Company and the Associate. 
  
 ARTICLE III 
  
 PERIOD OF EXERCISABILITY 
  
 3.1 Commencement of Exercisability. 
  
 (a) Subject to Sections 3.3 and 5.10, the Option shall become exercisable in such amounts and at such times as are set forth in Exhibit A hereto.

  
 (b) No portion of the Option which has not become exercisable
at Termination of Service shall thereafter become exercisable, except as may be otherwise provided by the Committee or as set forth in a written agreement between the Company and the Associate. 
  
 3.2 Duration of Exercisability. The installments provided for in
Section 3.1(a) and Exhibit A hereto are cumulative. Each such installment which becomes exercisable pursuant to Section 3.1 shall remain exercisable until it becomes unexercisable under Section 3.3. 
  
 3.3 Expiration of Option. The Option may not be exercised to any
extent by anyone after the first to occur of the following events: 
  
 (a) The expiration of ten (10) years from the Grant Date; or 
  
 (b) If this Option is designated as an Incentive Stock Option and the Associate owned (within the meaning of Section 424(d) of the Code), at the time the Option was granted, more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or any Subsidiary or parent corporation thereof (within the meaning of Section 422 of the Code), the expiration of five years from the date the Option was granted; or 
  
 (c) The expiration of 90 days following the date of the Associate’s
Termination of Service, unless such Termination of Service occurs by reason of the Associate’s discharge for Cause, or by reason of the Associate’s death, or Disability or as set forth in a written agreement with the Company; or

  
 (d) The date of the Associate’s Termination of Service by
reason of the Associate’s discharge for Cause; or 
  
 (e) The
expiration of one year following the date of the Associate’s Termination of Service by reason of the Associate’s death or Disability. 
  

 3.4 Special Tax Consequences. The Associate acknowledges that, to the extent that the aggregate
Fair Market Value of stock with respect to which Incentive Stock Options (but without regard to Section 422(d) of the Code), including the Option, are exercisable for the first time by the Associate during any calendar year (under the Plan and all
other incentive stock option plans of the Company, any Subsidiary and any parent corporation thereof (within the meaning of Section 422 of the Code)) exceeds $100,000, the Option and such other options shall be treated as not qualifying under
Section 422 of the Code but rather shall be taxed as Non-Qualified Stock Options. The Associate further acknowledges that the rule set forth in the preceding sentence shall be applied by taking options into account in the order in which they were
granted. For purposes of these rules, the Fair Market Value of Stock shall be determined as of the time the option with respect to such Stock is granted. 
  
 ARTICLE IV 
  
 EXERCISE OF OPTION 
  
 4.1 Person Eligible to Exercise. During the lifetime of the Associate, only the Associate may exercise the Option or any portion thereof. After the death of the Associate, any exercisable portion of the Option
may, prior to the time when the Option becomes unexercisable under Section 3.3, be exercised by the Associate’s personal representative or by any person empowered to do so under the Associate’s will or under the then applicable laws of
descent and distribution. 
  
 4.2 Partial Exercise. Any
exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.3. 
  
 4.3 Manner of Exercise. The Option, or any exercisable portion
thereof, may be exercised solely by delivery to the Secretary or the Secretary’s office of all of the following prior to the time when the Option or such portion thereof becomes unexercisable under Section 3.3: 
  
 (a) An Exercise Notice in writing signed by the Associate or the other person
then entitled to exercise the Option or portion thereof, stating that the Option or portion thereof is thereby exercised, such notice complying with all applicable rules established by the Committee. Such notice shall be substantially in the form
attached as Exhibit B (or such other form as is prescribed by the Committee); and 
  
 (b) (i) Full payment (in cash or by check) for the shares with respect to which the Option or portion thereof is exercised, to the extent permitted under applicable laws; or 
  
 (ii) With the consent of the Committee, such payment may be
made, in whole or in part, through the delivery of shares of Stock which have been owned by the Associate for at least six months, duly endorsed for transfer to the Company with a Fair Market Value on the date of delivery equal to the aggregate
exercise price of the Option or exercised portion thereof; or 
  

 (iii) To the extent permitted under applicable laws, through the delivery of a notice
that the Associate has placed a market sell order with a broker with respect to shares of Stock then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the
Company in satisfaction of the Option exercise price, provided, that payment of such proceeds is made to the Company upon settlement of such sale; or 
  
 (iv) With the consent of the Committee, any combination of the consideration provided in the foregoing subparagraphs (i), (ii) and (iii);
and 
  
 (c) A bona fide written representation and agreement, in
such form as is prescribed by the Committee, signed by the Associate or other person then entitled to exercise such Option or portion thereof, stating that the shares of Stock are being acquired for the Associate’s own account, for investment
and without any present intention of distributing or reselling said shares or any of them except as may be permitted under the Securities Act and then applicable rules and regulations thereunder, and that the Associate or other person then entitled
to exercise such Option or portion thereof will indemnify the Company against and hold it free and harmless from any loss, damage, expense or liability resulting to the Company if any sale or distribution of the shares by such person is contrary to
the representation and agreement referred to above. The Committee may, in its absolute discretion, take whatever additional actions it deems appropriate to ensure the observance and performance of such representation and agreement and to effect
compliance with the Securities Act and any other federal or state securities laws or regulations. Without limiting the generality of the foregoing, the Committee may require an opinion of counsel acceptable to it to the effect that any subsequent
transfer of shares acquired on an Option exercise does not violate the Securities Act, and may issue stop-transfer orders covering such shares. Share certificates evidencing Stock issued on exercise of the Option shall bear an appropriate legend
referring to the provisions of this subsection (c) and the agreements herein. The written representation and agreement referred to in the first sentence of this subsection (c) shall, however, not be required if the shares to be issued pursuant to
such exercise have been registered under the Securities Act, and such registration is then effective in respect of such shares; and 
  
 (d) Full payment to the Company (or other employer corporation) of all amounts which, under federal, state or local tax law, it is required to withhold
upon exercise of the Option. With the consent of the Committee, (i) shares of Stock owned by the Associate for at least six months duly endorsed for transfer or (ii) shares of Stock issuable to the Associate upon exercise of the Option, having a
Fair Market Value at the date of Option exercise equal to the statutory minimum sums required to be withheld, may be used to make all or part of such payment; and 
  
 (e) In the event the Option or portion thereof shall be exercised pursuant to Section 4.1 by any person or persons other
than the Associate, appropriate proof of the right of such person or persons to exercise the Option. 
  
 4.4 Conditions to Issuance of Stock Certificates. The shares of Stock deliverable upon the exercise of the Option, or any portion thereof, may be
either previously authorized but unissued shares or issued shares which have then been reacquired by the 

  

 
Company. Such shares shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any certificate or certificates for shares
of Stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of the following conditions: 
  
 (a) The admission of such shares to listing on all stock exchanges on which such Stock is then listed; and 
  
 (b) The completion of any registration or other qualification of such shares
under any state or federal law or under rulings or regulations of the Securities and Exchange Commission or of any other governmental regulatory body, which the Committee shall, in its absolute discretion, deem necessary or advisable; and

  
 (c) The obtaining of any approval or other clearance from any
state or federal governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable; and 
  
 (d) The receipt by the Company of full payment for such shares, including payment of all amounts which, under federal, state or local tax law, the Company
(or other employer corporation) is required to withhold upon exercise of the Option; and 
  
 (e) The lapse of such reasonable period of time following the exercise of the Option as the Committee may from time to time establish for reasons of administrative convenience. 
  
 4.5 Rights as Stockholder. The holder of the Option shall not be, nor
have any of the rights or privileges of, a stockholder of the Company in respect of any shares purchasable upon the exercise of any part of the Option unless and until certificates representing such shares shall have been issued by the Company to
such holder. 
  
 ARTICLE V 
  
 OTHER PROVISIONS 
  
 5.1 Administration. The Committee shall have the power to interpret
the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and
determinations made by the Committee in good faith shall be final and binding upon the Associate, the Company and all other interested persons. No member of the Committee shall be personally liable for any action, determination or interpretation
made in good faith with respect to the Plan, this Agreement or the Option. In its absolute discretion, the Board may at any time and from time to time exercise any and all rights and duties of the Committee under the Plan and this Agreement.

  
 5.2 Option Not Transferable. 
  
 (a) The Option may not be sold, pledged, assigned or transferred in any
manner other than by will or the laws of descent and distribution unless and until the Option has been exercised, or the shares underlying such Option have been issued, and all restrictions 

  

 
applicable to such shares have lapsed. Neither the Option nor any interest or right therein shall be liable for the debts, contracts or engagements of the
Associate or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law
by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by
the preceding sentence. 
  
 (b) During the lifetime of the
Associate, only the Associate may exercise the Option (or any portion thereof). After the death of the Associate, any exercisable portion of an Option may, prior to the time when such portion becomes unexercisable under the Plan or the Option
Agreement, be exercised by the Associate’s personal representative or by any person empowered to do so under the deceased Associate’s will or under the then applicable laws of descent and distribution. 
  
 5.3 Restrictive Legends and Stop-Transfer Orders. 
  
 (a) The share certificate or certificates evidencing the shares of Stock
purchased hereunder shall be endorsed with any legends that may be required by state or federal securities laws. 
  
 (b) The Associate agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop
transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 
  
 (c) The Company shall not be required: (i) to transfer on its books any shares of Stock that have been sold or otherwise
transferred in violation of any of the provisions of this Agreement, or (ii) to treat as owner of such shares of Stock or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such shares shall have been so
transferred. 
  
 5.4 Shares to Be Reserved. The Company
shall at all times during the term of the Option reserve and keep available such number of shares of Stock as will be sufficient to satisfy the requirements of this Agreement. 
  
 5.5 Notices. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the
Company in care of the Secretary, and any notice to be given to the Associate shall be addressed to the Associate at the address given beneath the Associate’s signature hereto. By a notice given pursuant to this Section 5.5, either party may
hereafter designate a different address for notices to be given to that party. Any notice which is required to be given to the Associate shall, if the Associate is then deceased, be given to the Associate’s personal representative if such
representative has previously informed the Company of such representative’s status and address by written notice under this Section 5.5. Any notice shall be deemed duly given when sent via email or enclosed in a properly sealed envelope or
wrapper 

  

 
addressed as aforesaid and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service.

  
 5.6 Titles. Titles are provided herein for convenience
only and are not to serve as a basis for interpretation or construction of this Agreement. 
  
 5.7 Stockholder Approval. The Plan will be submitted for approval by the Company’s stockholders within 12 months after the date the Plan was initially adopted by the Board. The Option may not be exercised
to any extent by anyone prior to the time when the Plan is approved by the stockholders, and if such approval has not been obtained by the end of said 12 month period, the Option shall thereupon be canceled and become null and void. 
  
 5.8 Notification of Disposition. If this Option is designated as an
Incentive Stock Option, the Associate shall give prompt notice to the Company of any disposition or other transfer of any shares of stock acquired under this Agreement if such disposition or transfer is made (a) within two years from the Grant Date
with respect to such shares or (b) within one year after the transfer of such shares to him. Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or
other consideration, by the Associate in such disposition or other transfer. 
  
 5.9 Construction. This Agreement shall be administered, interpreted and enforced under the laws of the State of Delaware without regard to conflicts of laws thereof. 
  
 5.10 Conformity to Securities Laws. The Associate acknowledges that
the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities laws
and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by
applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
  
 5.11 Amendments. This Agreement may not be modified, amended or terminated except by an instrument in writing, signed by the Associate or such
other person as may be permitted to exercise the Option pursuant to Section 4.1 and by a duly authorized representative of the Company. 
  

 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto. 
  

			
	 DESIGN WITHIN REACH, INC.

		
	BY:	 	 
	 	 	 

  

	
	
	  
	Associate Name
	
	  
	
	  
	Address
	
	 Associate’s Social Security Number:

	
	  
	 

  

  
 EXHIBIT A

  
 STOCK OPTION AGREEMENT 
  
 dated
                    ,             , 
 by and between 
 Design Within Reach,
Inc. 
 and
                                        
     
  

			
	Associate’s Name:	 	 _______________________________________________

		
	Associate’s Address:	 	 _______________________________________________

		
	 	 	 _______________________________________________

	
	Associate’s Social Security Number: ___________________________
	
	Type of Option (check one):
	
	  ̈    Incentive Stock Option
  
  ̈    Non-Qualified Stock Option

	
	Date of Grant: _______________________________________________________
	
	Vesting Commencement Date: ___________________________________________

  
 1. Pursuant to Section
2.1 of the Agreement, the Company grants an option to purchase any part or all of an aggregate of                      shares of Common Stock
(“Option Shares”) at a price per share of $             upon the terms and conditions set forth in the Agreement. 
  
 2. In accordance with Section 3.1(a) of the Agreement and subject to
stockholder approval of the Plan, the Option shall become exercisable in cumulative installments, rounded down to the nearest whole number of shares, as follows: 
  
 (a) One-fourth (1/4) of the Option Shares will vest one year after the Vesting Commencement Date.

  
 (b) The remainder of the Option Shares will
vest monthly thereafter over the following three (3) years at a rate of 1/36th of the shares each month. 

 
 3. Capitalized terms not otherwise defined herein shall have the meanings
assigned thereto in the Agreement. 
  

  
 EXHIBIT B

  
 FORM OF EXERCISE NOTICE 
  
 Design Within Reach, Inc. 
 [Insert Address] 
  
 Attention: Corporate
Secretary 
  

	 	Re:	Exercise of Stock Option 

  
 Ladies and Gentlemen: 
  
 1. Exercise of Option. The undersigned Associate,
                                , was granted an option (the “Option”)
to purchase shares of the Common Stock, par value $[        ] per share (“Common Stock”), of Design Within Reach, Inc., a Delaware corporation (the “Company”), effective as of
                    , pursuant to the Stock Option Agreement, dated
                     (the “Option Agreement”). The undersigned hereby elects to exercise the Option as follows: 
  

	 	(a)	The undersigned hereby elects to exercise the Option as to
                         shares of the Common Stock, in accordance with Section 3.1 of the Option Agreement (the
“Shares”). 

  

	 	(b)	This date of this exercise is                     
        ,             . 

  
 2. Payment. The undersigned has enclosed herewith
                     (representing full payment for such Shares in accordance with Section 4.3 of the Option Agreement). The undersigned
authorizes payroll withholding and otherwise will make adequate provision for the tax withholding obligations of the Company, if any, with respect to such exercise. 
  
 3. Binding Effect. The undersigned agrees that the Shares are being acquired in accordance with and subject to the
terms, provisions and conditions of the Option Agreement set forth therein, to all of which the undersigned hereby expressly assent. This Agreement shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors
and assigns of the undersigned. 
  
 The undersigned understands
that she is purchasing the Shares pursuant to the terms of the Option Agreement, a copy of which the undersigned has received and carefully read and understands. 
  

  
 Receipt of
the above is hereby acknowledged 
  

			
	 DESIGN WITHIN REACH, INC.,
 a
Delaware corporation

		
	By:	 	 
		
	 Title:Exclusive Supply Agreement

 Exhibit 10.72 
  
 REDACTED – OMITTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE COMMISSION 
 AND IS DENOTED HEREIN BY ***** 
  
 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 

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

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

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

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

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

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

	 	By:	 	 /s/ Robert S. Thomas

	 	 	Asko Vehanen, CEO	 	 	 	Robert S. Thomas, President

 REDACTED – OMITTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE COMMISSION 
 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 X (1-defect %) = Grams of Useable Material X 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. 

 REDACTED – OMITTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE COMMISSION 
 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. 

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

 REDACTED – OMITTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE COMMISSION 
 AND IS DENOTED HEREIN BY ***** 
  
 Exhibit C 
  
 IPR RELATED TO SECTION 5.9 
  
 *****

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