Document:

Exhibit 10.1

 

THIS PRIVATE PLACEMENT SUBSCRIPTION
AGREEMENT RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN)
PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). 

 

NONE OF THE SECURITIES TO WHICH THIS
PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE 1933
ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE
UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT,
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933 ACT.

 

CONFIDENTIAL

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT

(Subscribers Resident Outside of the United
States)

 

		TO:	Momentous Holdings Corp. (the “Company”)
	 	 	Suite 3, Floor 3, 148 Cambridge Heath
Road, 
	 	 	London, E1 5QJ, United Kingdom

 

Purchase of Shares

 

		1.	Subscription

 

1.1                                       
The undersigned (the “Subscriber”) hereby irrevocably subscribes for and agrees to purchase from the Company,
on the basis of the representations and warranties and subject to the terms and conditions set forth herein, 100,000 shares (the
“Shares”) at the price of US $0.10 per Share (such subscription and agreement to purchase being the “Subscription”)
for the total purchase price of US $10,000 (the “Subscription Proceeds”), in a transaction exempt from the registration
requirements of the Securities Act of 1933, as amended (the “Securities Act”).

 

1.2                                       
Each Share will consist of one restricted common share in the capital of the Company. The Shares may be referred to as the
“Securities”.

 

1.3                                       
Subject to the terms hereof, the Subscription will be effective upon its acceptance by the Company. The Subscriber acknowledges
that the offering of the Shares (the “Offering”) contemplated hereby is part a private placement of approximately 100,000
Shares having no maximum subscription level and no minimum aggregate subscription level.

 

		2.	Payment

 

2.1                                       
The Subscription Proceeds must accompany this Subscription and shall be paid by bank wire transfer directly to the Company.

 

2.2                                       
The Subscriber acknowledges and agrees that this Subscription Agreement, the Subscription Proceeds and any other documents
delivered in connection herewith will be held on behalf of the Company. In the event that this Subscription Agreement is not accepted
by the Company for whatever reason, which the Company expressly reserves the right to do, within 30 days of the delivery of an
executed Subscription Agreement by the Subscriber, this Subscription Agreement, the Subscription Proceeds (without interest thereon)
and any other documents delivered in connection herewith will be returned to the Subscriber at the address of the Subscriber as
set forth in this Subscription Agreement.

 

2.3                                       
Where the Subscription Proceeds are paid to the Company, the Company is entitled to treat such Subscription Proceeds as
an interest free loan to the Company until such time as the Subscription is accepted and the certificates representing the Securities
have been issued to the Subscriber.

 

 

 

 

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		3.	Documents Required from Subscriber

 

3.1                                       
The Subscriber must complete, sign and return to the Company an executed copy of this Subscription Agreement.

 

3.2                                       
The Subscriber shall complete, sign and return to the Company as soon as possible, on request by the Company, any documents,
questionnaires, notices and undertakings as may be required by regulatory authorities, and applicable law.

 

		4.	Closing

 

4.1                                       
Closing of the offering of the Shares (the “Closing”) shall occur on or before June 26, 2018, or on such other
date as may be determined by the Company (the “Closing Date”).

 

4.2                                       
The Company may, at its discretion, elect to close the Offering in one or more closings, in which event the Company may
agree with one or more subscribers (including the Subscriber hereunder) to complete delivery of the Securities to such subscriber(s)
against payment therefor at any time on or prior to the Closing Date.

 

		5.	Acknowledgements of Subscriber

 

5.1                                       
The Subscriber acknowledges and agrees that:

 

		(a)	none of the Securities have been registered under the 1933 Act, or under any state securities or
“blue sky” laws of any state of the United States, and, unless so registered, may not be offered or sold in the United
States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S under the 1933 Act (“Regulation
S”), except in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the
1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act and
in each case in accordance with applicable state and federal securities laws;

 

		(b)	except as provided in this Subscription Agreement, the Subscriber acknowledges that the Company
has not undertaken, and will have no obligation, to register any of the Securities under the 1933 Act;

 

		(c)	the decision to execute this Subscription Agreement and acquire the Securities hereunder has not
been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company, and such decision
is based entirely upon a review of information (the receipt of which is hereby acknowledged) which has been filed by the Company
(the “Public Record”) with the Securities and Exchange Commission (the “SEC”);

 

		(d)	neither the SEC nor any other securities commission or similar regulatory authority has reviewed
or passed on the merits of the Shares;

 

		(e)	there is no government or other insurance covering any of the Securities;

 

		(f)	there are risks associated with an investment in the Securities;

 

		(g)	the Subscriber has not acquired the Shares as a result of, and will not itself engage in, any “directed
selling efforts” (as defined in Regulation S under the 1933 Act) in the United States in respect of the Shares which would
include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning
the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise
dispose of the Shares pursuant to registration thereof under the 1933 Act and any applicable state and federal securities laws
or under an exemption from such registration requirements;

 

 

 

    	 	2	 

     

    

 

		(h)	the Subscriber and the Subscriber’s advisor(s) have had a reasonable opportunity to ask questions
of and receive answers from the Company in connection with the distribution of the Securities hereunder, and to obtain additional
information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of
the information about the Company;

 

		(i)	the Subscriber will indemnify and hold harmless the Company and, where applicable, its directors,
officers, employees, agents, advisors and shareholders, from and against any and all loss, liability, claim, damage and expense
whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating,
preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened)
arising out of or based upon any representation or warranty of the Subscriber contained herein or in any document furnished by
the Subscriber to the Company in connection herewith being untrue in any material respect or any breach or failure by the Subscriber
to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;

 

		(j)	none of the Securities are listed on any stock exchange or automated dealer quotation system and
no representation has been made to the Subscriber that any of the Securities will become listed on any stock exchange or automated
dealer quotation system, except that currently market makers make a market for the Company’s common shares on the FINRA’s
OTC Markets;

 

		(k)	the Company will refuse to register any transfer of the Shares not made in accordance with the
provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption
from the registration requirements of the 1933 Act and in accordance with applicable state and federal securities laws;

 

		(l)	the statutory and regulatory basis for the exemption claimed for the offer of the Shares, although
in technical compliance with Regulation S, would not be available if the offering is part of a plan or scheme to evade the registration
provisions of the 1933 Act or any applicable state and federal securities laws;

 

		(m)	the Subscriber has been advised to consult the Subscriber’s own legal, tax and other advisors
with respect to the merits and risks of an investment in the Shares and with respect to applicable resale restrictions, and it
is solely responsible (and the Company is not in any way responsible) for compliance with:

 

		(i)	any applicable laws of the jurisdiction in which the Subscriber is resident in connection with
the distribution of the Shares hereunder, and

 

		(ii)	applicable resale restrictions; and

 

		(n)	this Subscription Agreement is not enforceable by the Subscriber unless it has been accepted by
the Company, and the Subscriber acknowledges and agrees that the Company reserves the right to reject any subscription for any
reason.

 

		6.	Representations, Warranties and Covenants of the Subscriber

 

		(a)	The Subscriber hereby represents and warrants to and covenants with the Company (which representations,
warranties and covenants shall survive the Closing) that:

 

		(b)	the Subscriber has the legal capacity and competence to enter into and execute this Subscription
Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and
validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders
and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;

 

 

 

 

 

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		(c)	the entering into of this Subscription Agreement and the transactions contemplated hereby do not
result in the violation of any of the terms and provisions of any law applicable to the Subscriber or of any agreement, written
or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;

 

		(d)	the Subscriber has duly executed and delivered this Subscription Agreement and it constitutes a
valid and binding agreement of the Subscriber enforceable against the Subscriber in accordance with its terms;

 

		(e)	the Subscriber is acquiring the Securities pursuant to an exemption from the registration and prospectus
requirements of applicable securities legislation in all jurisdictions relevant to this Subscription, and, as a consequence, the
Subscriber will not be entitled to use most of the civil remedies available under applicable securities legislation and the Subscriber
will not receive information that would otherwise be required to be provided to the Subscriber pursuant to applicable securities
legislation;

 

		(f)	the Subscriber is not acquiring the Shares for the account or benefit of, directly or indirectly,
any U.S. Person;

 

		(g)	the Subscriber is not a U.S. Person;

 

		(h)	the Subscriber is resident in the jurisdiction set out under the heading “Name and Address
of Subscriber” on the signature page of this Subscription Agreement;

 

		(i)	the sale of the Shares to the Subscriber as contemplated in this Subscription Agreement complies
with or is exempt from the applicable securities legislation of the jurisdiction of residence of the Subscriber;

 

		(j)	the Subscriber is outside the United States when receiving and executing this Subscription Agreement
and is acquiring the Shares as principal for the Subscriber’s own account, for investment purposes only, and not with a view
to, or for, resale, distribution or fractionalisation thereof, in whole or in part, and no other person has a direct or indirect
beneficial interest in such Shares;

 

		(k)	the Subscriber is not an underwriter of, or dealer in, the common shares of the Company, nor is
the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Shares;

 

		(l)	the Subscriber (i) is able to fend for him/her/itself in the Subscription; (ii) has such knowledge
and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the Shares;
and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;

 

		(m)	the Subscriber acknowledges that the Subscriber has not acquired the Shares as a result of, and
will not itself engage in, any “directed selling efforts” (as defined in Regulation S under the 1933 Act) in the United
States in respect of the Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected
to have the effect of, conditioning the market in the United States for the resale of the Shares; provided, however, that the Subscriber
may sell or otherwise dispose of the Shares pursuant to registration of the Shares pursuant to the 1933 Act and any applicable
state and federal securities laws or under an exemption from such registration requirements and as otherwise provided herein;

 

		(n)	the Subscriber is not aware of any advertisement of any of the Securities and is not acquiring
the Shares as a result of any form of general solicitation or general advertising including advertisements, articles, notices or
other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar
or meeting whose attendees have been invited by general solicitation or general advertising; and

 

 

 

 

 

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		(o)	no person has made to the Subscriber any written or oral representations:

 

		(i)	that any person will resell or repurchase any of the Securities;

 

		(ii)	that any person will refund the purchase price of any of the Securities;

 

		(iii)	as to the future price or value of any of the Securities; or

 

		(iv)	that any of the Securities will be listed and posted for trading on any stock exchange or automated
dealer quotation system or that application has been made to list and post any of the Securities of the Company on any stock exchange
or automated dealer quotation system.

 

		7.	Representations and Warranties of the Company

 

7.1                                       
The Company acknowledges and agrees that the Subscriber is entitled to rely upon the representations and warranties of the
Company contained in this Agreement and further acknowledges that the Subscriber will be relying upon such representations and
warranties in purchasing the Shares.

 

7.2                                       
The Company warrants that the Public Record fairly represents the status of the Company as at the dates indicated in the
Public Record.

 

		8.	Representations and Warranties will be Relied Upon by the Company

 

8.1                                       
The Subscriber acknowledges that the representations and warranties contained herein are made by it with the intention that
they may be relied upon by the Company and its legal counsel in determining the Subscriber’s eligibility to purchase the
Shares under applicable securities legislation, or (if applicable) the eligibility of others on whose behalf it is contracting
hereunder to purchase the Shares under applicable securities legislation. The Subscriber further agrees that by accepting delivery
of the certificates representing the Securities on the Closing Date, it will be representing and warranting that the representations
and warranties contained herein are true and correct as at the Closing Date with the same force and effect as if they had been
made by the Subscriber at the Closing Date and that they will survive the purchase by the Subscriber of Shares and will continue
in full force and effect notwithstanding any subsequent disposition by the Subscriber of such Shares.

 

		9.	Legending of Subject Securities

 

9.1                                       
The Subscriber hereby acknowledges that that upon the issuance thereof, and until such time as the same is no longer required
under the applicable securities laws and regulations, the certificates representing any of the Securities will bear a legend in
substantially the following form:

 

“THESE
SECURITIES WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION
S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). ACCORDINGLY, NONE OF THE SECURITIES
TO WHICH THIS CERTIFICATE RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED,
NONE MAY BE OFFERED OR SOLD IN THE UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING
THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933 ACT.”

 

9.2                                       
The Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to
the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this
Subscription Agreement.

 

9.3                                       
The Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to
the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this
Subscription Agreement.

 

 

 

 

    	 	5	 

     

    

 

		10.	Costs

 

10.1                                    
The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber (including any fees and disbursements
of any special counsel retained by the Subscriber) relating to the purchase of the Shares shall be borne by the Subscriber.

 

		11.	Governing Law

 

11.1                                    
This Subscription Agreement is governed by the laws of the State of Nevada. The Subscriber, in its personal or corporate
capacity and, if applicable, on behalf of each beneficial purchaser for whom it is acting, irrevocably attorns to the jurisdiction
of the courts of the State of Nevada.

 

		12.	Survival

 

12.1                                    
This Subscription Agreement, including without limitation the representations, warranties and covenants contained herein,
shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the
purchase of the Shares by the Subscriber pursuant hereto.

 

		13.	Assignment

 

13.1                                    
This Subscription Agreement is not transferable or assignable.

 

		14.	Severability

 

14.1                                    
The invalidity or unenforceability of any particular provision of this Subscription Agreement shall not affect or limit
the validity or enforceability of the remaining provisions of this Subscription Agreement.

 

		15.	Entire Agreement

 

15.1                                    
Except as expressly provided in this Subscription Agreement and in the agreements, instruments and other documents contemplated
or provided for herein, this Subscription Agreement contains the entire agreement between the parties with respect to the sale
of the Shares and there are no other terms, conditions, representations or warranties, whether expressed, implied, oral or written,
by statute or common law, by the Company or by anyone else.

 

		16.	Notices

 

16.1                                    
All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed
or transmitted by any standard form of telecommunication. Notices to the Subscriber shall be directed to the address on the signature
page of this Subscription Agreement and notices to the Company shall be directed to the address on the cover page of this Subscription
Agreement.

 

		17.	Counterparts and Electronic Means

 

17.1                                    
This Subscription Agreement may be executed in any number of counterparts, each of which, when so executed and delivered,
shall constitute an original and all of which together shall constitute one instrument. Delivery of an executed copy of this Subscription
Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will
be deemed to be execution and delivery of this Subscription Agreement as of the date hereinafter set forth.

 

 

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF the Subscriber
has duly executed this Subscription Agreement as of the date of acceptance by the Company.

 

	 	 	 
	 	(Name of Subscriber - Please type or print)	 
	 	 	 
	 	 	 
	 	(Signature and, if
applicable, Office)	 
	 	 	 
	 	 	 
	 	(Address of Subscriber)	 
	 	 	 
	 	 	 
	 	 	 
	 	(City, State or Province,
Postal Code of Subscriber)	 
	 	 	 
	 	 	 
	 	 	 
	 	(Country of Subscriber)	 

 

 

 

 

A C C E P T A N C E

 

The above-mentioned Subscription Agreement
in respect of the Shares is hereby accepted by Momentous Holdings Corp.

 

DATED at London, the 26th of June 2018.

 

 

Momentous Holdings Corp.

Per:____________________________

           Authorized Signatory

 

 

 

 

 

 

    	 	7Exhibit 10.1

 

FIRST AMENDMENT TO

EXCLUSIVE SUPPLY AGREEMENT

 

This FIRST AMENDMENT TO EXCLUSIVE SUPPLY AGREEMENT (“First
Amendment”) is entered into as of June 22, 2018 (the “First Amendment Effective Date”), by and between CHARLES
& COLVARD, LTD., a North Carolina corporation, with its principal place of business at 170 Southport Drive, Morrisville, North
Carolina 27560 (“C&C”), and CREE, INC., a North Carolina corporation, with its principal place of business located
at 4600 Silicon Dr., Durham, North Carolina 27703 (“Cree”). C&C and Cree may be referred to hereinafter individually
as “Party” and collectively as “Parties.” Capitalized terms used but not defined herein shall have the
meanings ascribed to them in the Agreement.

 

WHEREAS, Cree is in the business of developing, manufacturing
and selling silicon carbide (SiC) substrates and materials for various electronic applications; and

 

WHEREAS, C&C develops, manufactures and markets gemstones
fabricated from SiC material and desires to purchase certain material from Cree; and

 

WHEREAS, C&C and Cree previously entered into an
Exclusive Supply Agreement dated December 12, 2014 (the “Agreement”); and

 

WHEREAS, the Parties desire to enter into this First
Amendment to modify certain terms of the Agreement as of the First Amendment Effective Date.

 

NOW, THEREFORE, the Parties, in consideration of the
foregoing premises and the covenants and undertakings herein contained, mutually agree as follows:

 

		1.	General.

 

All references to “[***]” in the Agreement,
including Exhibit A, are hereby replaced with references to “[***].” The references to “Section 4(b),”
“Section 6(c),” and “Section 14(a)” in the Agreement are hereby replaced with references to “Paragraph
4(b),” “Paragraph 6(c),” and “Paragraph 14(a),” respectively.

 

		2.	Term.

 

		a.	Paragraph 2(a) of the Agreement is hereby deleted in its entirety and replaced with the following:

 

“(a) The term of this Agreement shall begin
on the Effective Date and expire on June 25, 2023 (the ‘Initial Term’), unless earlier terminated as provided herein
or extended by mutual written agreement of the Parties or extended as provided in Paragraph 2(b). The period from the Effective
Date until the expiration or termination of this Agreement in accordance with its terms shall be referred to as the ‘Term.’
At least [***] months prior to the expiration date of the Initial Term, C&C will notify Cree in writing of its desire to continue
the business relationship through the extension of the Term. Promptly following such notification, the Parties will meet in person
or by telephone to discuss a possible extension to the Term, including but not limited to discussing production volumes, purchase
commitments, pricing, and third-party sourcing percentages for the extension period. However, Cree shall only be obligated to extend
the Term at C&C’s request pursuant to Paragraph 2(b) below.”

  

		b.	The portion of Paragraph 2(b) preceding clauses (1), (2) and (3) thereof is hereby deleted and replaced with the following:

 

 

“Subject to the conditions set forth in this
Paragraph 2(b), C&C shall have one (1) option (the ‘Renewal Option’) to extend the Term of this Agreement for an
additional two (2)-year period (the ‘Renewal Term’) on the same terms and conditions then in effect (with such changes
for the Renewal Term as may be mutually agreed upon in writing by the Parties). The Renewal Option shall be exercisable upon written
notice (the ‘Option Notice’) given by C&C to Cree not later than [***]. The right of C&C to exercise its Renewal
Option is subject to the following conditions precedent:”

 

    
[***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been separately filed with the Commission.
 

	 	Page 1 of 6	 

     

    

 

		3.	Cree Priority Collateral.

 

		a.	Clause (z) in the last sentence in the first paragraph of Paragraph 6(c) of the Agreement is hereby deleted in its entirety
and replaced with the following:

 

“(z) Cree’s rights with respect to Collateral
are subject to that certain intercreditor agreement among Cree, C&C, and Wells Fargo Bank, National Association during the
term of such agreement, and thereafter to any written intercreditor agreement between Cree, C&C, and C&C’s lender
that has a priority interest in all Collateral other than the Cree Priority Collateral (the “IC Agreement”).

 

		b.	In Paragraph 6(c)(I), the reference to “as in the State of Georgia” is hereby changed to read “of the state
whose laws govern the IC Agreement.”

 

		c.	Paragraph (6)(c)(III) of the Agreement is hereby deleted in its entirety and replaced with the following: “‘Collateral’
means any and all of the assets now owned or hereafter acquired by any Obligor, together with all proceeds, products, accessions
and additions with respect to each of the foregoing from time to time, including, without limitation, any insurance proceeds, but
expressly excluding assets that constitute precious metals, regardless of form.”

 

		4.	Buyer’s Exclusivity Commitment.

 

		a.	The last two sentences of Paragraph 7(c) of the Agreement are hereby deleted in their entirety.

 

		b.	Paragraph 7(d) of the Agreement is hereby modified by adding the following new sentence at the end of the section:

 

“It is understood and agreed that nothing herein
is intended to prohibit C&C from [***] gemstones made using the SiC materials acquired in accordance with this Paragraph 7(d).”

 

For avoidance of doubt, this modification also applies
to gemstones manufactured prior to the First Amendment Effective Date. Except as modified above, Paragraph 7(d) remains in full
force and effect, and the rights conveyed therein are independent of C&C’s rights under Paragraphs 7(b) and 7(c) to purchase
SiC materials from suppliers other than Cree. Further, any fulfillment by Cree of C&C’s requirements for Alternative
SIC Materials, as provided in Section 4(d) of this First Amendment, shall have no impact on the quantities of SiC materials that
C&C may purchase under Paragraph 7(d).

 

		c.	Paragraph 7(f) is hereby deleted in its entirety and replaced with the following:

 

“(f)Cree’s sole and exclusive remedy
for breach of this Paragraph 7 by C&C will be to terminate the Parties’ exclusivity obligations as provided in Paragraph
8(c) below.”

 

		d.	C&C has expressed an interest in purchasing a different [***] of SiC materials than currently contemplated in Exhibit
A of the Agreement (i.e., SiC materials [***] set forth in Exhibit A as of the First Amendment Effective Date) for the
production of gemstones (the “Alternative SiC Material”). Since C&C is required to purchase 100% of its requirements
for gemstones from Cree, except as otherwise provided in Paragraph 7 of the Agreement, and Cree does not currently offer the Alternative
SiC Material for sale, it is necessary to establish the process for determining whether Cree is able to manufacture and sell a
product that meets C&C’s Alternative SiC Material requirements. Accordingly, the following language is hereby added as
a new Section 7(g) of the Agreement:

 

    
[***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been separately filed with the Commission.
 

	 	Page 2 of 6	 

     

    

 

“By [***], Cree will provide to C&C sample(s)
of SiC material that it believes meet C&C’s Alternative SiC Material requirements for C&C’s evaluation. 
By [***], C&C will provide to Cree [***] specifications by which C&C has [***] Alternate SiC Material ([***] specifications
shall [***] be referred to as the “Alternate Material Standard”) for Cree’s verification.  Within [***]
weeks of receipt, C&C will objectively evaluate the samples of alternate SiC material provided by Cree to determine compliance
with the Alternate Material Standard established by C&C.  If Cree’s samples meet the Alternate Material Standard,
then C&C shall extend to Cree a right of first refusal to match the price offered by an undisclosed third-party supplier for
the Alternative SiC Material [***]. If Cree agrees to match the price for all or some of C&C’s Alternative SiC Material
requirements, Exhibit A of this Agreement will be deemed modified to include the Alternative SiC Material as a new Product
under this Agreement, including the agreed price and specifications for the new Product, and C&C will purchase from Cree its
requirements for the Alternative SiC Materials, subject to any quantity limitations provided by Cree. If Cree does not agree to
match the price within [***] days after receipt of C&C’s notice, or if Cree agrees to match the price but is unable to
supply all of C&C requirements for the Alternative SiC Material, then C&C will be free at any time within the next [***]
months after expiration of the [***]-day period to purchase the Alternative SiC Material that Cree is unable or unwilling to supply
from the third-party supplier, provided that (i) the [***] of such transaction are not, taken as a whole, materially more favorable
to the third party supplier than those described in C&C’s notice to Cree and (ii) the maximum quantity of Alternative
SiC Material purchased by C&C from all third-party suppliers does not exceed [***] for Fiscal Year [***], [***] for Fiscal
Year [***], [***] for Fiscal Year [***], [***] for Fiscal Year [***], and [***] for Fiscal Year [***] of the Minimum Purchase Commitment
applicable to that Fiscal Year; provided that the foregoing [***] will be [***] in each Fiscal Year by the amount of Alternative
SiC Material purchased by C&C from Cree and the amount of any SiC material purchased by C&C under Paragraph 7(d) during
such Fiscal Year.  For the avoidance of doubt, C&C may elect not to purchase any Alternate SiC Material, and C&C shall
not be obligated to offer Cree a right of first refusal for SiC materials purchased under Paragraph 7(d). Either Party may request
a new evaluation of Alternative SiC Material in the manner set forth above by providing the other Party a written request for reconsideration,
but not more frequently than once every [***] months during the Term. For example, if a third party is fulfilling C&C’s
Alternative SiC Material requirements, then [***] months after completion of the last right of first refusal process, Cree may
submit new SiC material sample(s) for evaluation by C&C against the Alternative Material Standard, or if Cree is fulfilling
C&C’s Alternative SiC Material requirements and C&C has identified a new supplier offering a lower price for the
Alternative SiC Material, then [***] months after completion of the last right of first refusal process, C&C may provide Cree
[***] for verification and give Cree a right of first refusal to match the price offered by an undisclosed third-party supplier.
For avoidance of doubt, this Paragraph 7(g) takes precedence over Paragraph 7(c) with respect to Alternate SiC Material.” 
     

 

		5.	Buyer’s Purchase Commitments.

 

Paragraph 9(a) is hereby deleted in its entirety
and replaced with the following:

 

“(a)Each Fiscal Quarter, C&C agrees
to purchase Products from Cree in quantities at or above the Minimum Purchase Commitment amount for such Fiscal Quarter. Failure
to do so will, except as contemplated below, be considered a breach of the Agreement. The ‘Minimum Purchase Commitment’
for each Fiscal Quarter will be [***] (i) at least [***]% of C&C's requirements for SiC materials for the production of gemstones
in colors available from Cree, excluding from such calculation any SiC materials purchased from third parties as expressly permitted
in Paragraph 7(a) (but including any SiC materials purchased from third parties as expressly permitted in Paragraph 7(b), 7(c),
7(d) or 7(g)), or (ii) (A) [***] kilograms in the [***] Quarter of [***]; (B) [***] kilograms in the [***] Quarter of [***]; (C)
[***] kilograms in [***] Quarter of [***]; (D) [***] kilograms in [***] Quarter of [***]; (E) [***] kilograms in [***] Quarter
of [***]; (F) [***] kilograms in [***] Quarter of [***]; (G) [***] kilograms in [***] Quarter of [***]; (H) [***] kilograms in
[***] Quarter of [***]; (I) [***] kilograms in [***] Quarter of [***]; and (J) [***] kilograms in [***] Quarter of [***]. If C&C
exercises its Renewal Option, unless otherwise agreed in writing by the Parties, the Minimum Purchase Commitment amount for each
Fiscal Quarter of the Renewal Term will be [***] kilograms.

 

    
[***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been separately filed with the Commission.
 

	 	Page 3 of 6	 

     

    

 

		6.	Exhibit A.

 

		a.	By [***], the Parties will mutually agree upon a new Master Boule to be used for Forever OneTM Specifications purposes
in Exhibit A.

 

		b.	The “Products” section in Exhibit A is hereby deleted in its entirety and replaced with the following:

 

“Products:

 

[***] SiC [***] crystals.

 

Pricing for [***] SiC [***] crystals (all prices
are per gram) Meeting Forever OneTM Specifications: 

 

	Fiscal Year	Volume (kg)	Volume (grams)	Revenue	Price per gram of Product meeting Forever OneTM Specifications
	2019	[***]	[***]	$[***]	$[***]
	2020	[***]	[***]	$[***]	$[***]
	2021	[***]	[***]	$[***]	$[***]
	2022	[***]	[***]	$[***]	$[***]
	2023	[***]	[***]	$[***]	$[***]
	Total	[***]	[***]	$52,945,000	$[***]

 

The prices will be determined based on the Fiscal
Year in which the Product is originally scheduled for delivery. The Parties agree that the foregoing pricing shall be subject to
change from time to time, as mutually agreed upon in writing by the Parties, based upon any improvements made by Cree to the Specifications
of the SiC Materials.

 

		c.	All references relating to [***] boules/crystals are hereby deleted from Exhibit A.

 

		d.	In Exhibit A, the Section heading “Specifications” is hereby changed to “Forever OneTM
Specifications”.

 

		e.	The images in Subsection (C) of the “Forever OneTM Specifications” Section shall be deleted and
replaced with the following:

 

[***]

 

 

    
[***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been separately filed with the Commission.
 

	 	Page 4 of 6	 

     

    

 

		7.	Quarterly Business Review.

 

During the Term of the Agreement, the Parties shall
meet at least once per Fiscal Quarter to discuss high-level strategy/performance review, including but not limited to discussions
concerning the following topics:

 

		i.	Product performance, yield, and concerns;

 

		ii.	Opportunities for Product improvement, yield improvement, etc.; and

 

		iii.	Third-party sourcing.

 

		8.	Miscellaneous.

 

All modifications and changes in this First Amendment
shall be effective as of the First Amendment Effective Date, notwithstanding a later or earlier execution date. The Agreement,
as amended herein, shall continue in effect in accordance with its terms. In the event of conflict between the terms and conditions
in this First Amendment and in the Agreement, the terms and conditions in this Amendment will control. The Agreement and Exhibits,
as modified by this First Amendment, and the NDA contain the entire agreement between C&C and Cree with respect to the subject
matter of the Agreement and supersede all other prior written or oral agreements relating to the purchase and sale of Products.
This First Amendment may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together
shall constitute one and the same instrument. Any signed copy of this First Amendment copied or reproduced and transmitted via
photocopy, facsimile or other process that accurately transmits the original document shall be considered an original document.

 

    
[***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been separately filed with the Commission.
 

	 	Page 5 of 6	 

     

    

 

IN WITNESS WHEREOF, each of the Parties has duly executed
this First Amendment as of the dates indicated below to be effective as of the First Amendment Effective Date, notwithstanding
an earlier or later execution date.

 

 

	CREE, INC.	 	CHARLES & COLVARD,
    LTD.
	 	 	 	 	 	 	 
	By:	 	/s/ C. Balkas	 	By:	 	/s/ Suzanne
    Miglucci
	Cengiz Balkas	 	Suzanne Miglucci
	Title:	 	Vice President	 	Title:	 	President and CEO
	Date:	 	June 21, 2018	 	Date:	 	June 22,
    2018

 

	Address
    for Notices	 	Address
    for Notices
	Cree, Inc.	 	Charles & Colvard,
    Ltd.
	4600 Silicon Drive	 	170 Southport Drive
	Durham, North Carolina
    27703	 	Morrisville, North Carolina
    27560
	Attn: Cengiz Balkas	 	Attn: Maria Flanagan
	Email: [***]	 	Email: [***]
	Fax No.: 919-[***]	 	Fax No.: 919-[***]
	 	 	 
	With copy of any notices
    of a legal nature to:	 	With copy of any notices
    of a legal nature to:
	Cree, Inc.	 	Wyrick Robbins Yates
    & Ponton LLP
	Attn: General Counsel	 	Attn: Jason Wood
	4600 Silicon Dr.	 	4101 Lake Boone Trail
	Durham, North Carolina
    27703	 	Raleigh, NC 27607
	Email: [***]	 	Email: [***]
	Fax No.: 919-[***]	 	Fax No.: 919-[***]

 

 

CGS-E035

    
[***] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been separately filed with the Commission.
 

	 	Page 6 of 6

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