Document:

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                                                                     EXHIBIT 4.3

                        COMMUNITY BANK OF PICKENS COUNTY

                            2000 STOCK INCENTIVE PLAN

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                                TABLE OF CONTENTS

ARTICLE 1.  ESTABLISHMENT, PURPOSE, AND DURATION...............................1
                  1.1      ESTABLISHMENT OF THE PLAN...........................1
                  1.2      PURPOSE OF THE PLAN.................................1
                  1.3      DURATION OF THE PLAN................................1

ARTICLE 2.  DEFINITIONS........................................................1

ARTICLE 3.  ADMINISTRATION.....................................................4
                  3.1      THE COMMITTEE.......................................4
                  3.2      AUTHORITY OF THE COMMITTEE..........................4
                  3.3      DECISIONS BINDING...................................5

ARTICLE 4.  SHARES SUBJECT TO THE PLAN.........................................5
                  4.1      NUMBER OF SHARES....................................5
                  4.2      LAPSED AWARDS.......................................5
                  4.3      ADJUSTMENTS IN AUTHORIZED SHARES....................5

ARTICLE 5.  ELIGIBILITY AND PARTICIPATION......................................6

ARTICLE 6.  STOCK OPTIONS......................................................6
                  6.1      GRANT OF OPTIONS....................................6
                  6.2      AGREEMENT...........................................6
                  6.3      OPTION PRICE........................................6
                  6.4      DURATION OF OPTIONS.................................7
                  6.5      EXERCISE OF OPTIONS.................................8
                  6.6      PAYMENT.............................................8
                  6.7      LIMITED TRANSFERABILITY.............................8
                  6.8      SHAREHOLDER RIGHTS..................................8

ARTICLE 7.  RESTRICTED STOCK; STOCK AWARDS.....................................8
                  7.1      GRANTS..............................................8
                  7.2      RESTRICTED PERIOD; LAPSE OF RESTRICTIONS............9
                  7.3      RIGHTS OF HOLDER; LIMITATIONS THEREON...............9
                  7.4      DELIVERY OF UNRESTRICTED SHARES....................10
                  7.5      NONASSIGNABILITY OF RESTRICTED STOCK...............10

ARTICLE 8.  BENEFICIARY DESIGNATION...........................................10

ARTICLE 9.  DEFERRALS 11

ARTICLE 10.  RIGHTS OF OFFICERS...............................................11
                  10.1     EMPLOYMENT.........................................11
                  10.2     PARTICIPATION......................................11

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ARTICLE 11.  CHANGE IN CONTROL................................................11
                  11.1     DEFINITION.........................................11
                  11.2     LIMITATION ON AWARDS...............................12

ARTICLE 12.  AMENDMENT, MODIFICATION, AND TERMINATION.........................12
                  12.1     AMENDMENT, MODIFICATION, AND TERMINATION...........12
                  12.2     AWARDS PREVIOUSLY GRANTED..........................13
                  12.3     COMPLIANCE WITH CODE SECTION 162(M)................13

ARTICLE 13.  CANCELLATION AND RESCISSION OF AWARDS............................13

ARTICLE 14.  WITHHOLDING......................................................14
                  14.1     TAX WITHHOLDING....................................14
                  14.2     SHARE WITHHOLDING..................................14

ARTICLE 15.  INDEMNIFICATION..................................................14

ARTICLE 16.  SUCCESSORS.......................................................14

ARTICLE 17.  LEGAL CONSTRUCTION...............................................15
                  17.1     SEVERABILITY.......................................15
                  17.2     REQUIREMENTS OF LAW................................15
                  17.3     REGULATORY APPROVALS AND LISTING...................15
                  17.4     SECURITIES LAW COMPLIANCE..........................15
                  17.5     GOVERNING LAW......................................15

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                        COMMUNITY BANK OF PICKENS COUNTY

                            2000 STOCK INCENTIVE PLAN

ARTICLE 1.  ESTABLISHMENT, PURPOSE, AND DURATION

        1.1     ESTABLISHMENT OF THE PLAN Community Bank of Pickens County, a
Georgia banking corporation (the "Bank"), hereby establishes a stock option and
incentive award plan known as the "Community Bank of Pickens County 2000 Stock
Incentive Plan" (the "Plan"), as set forth in this document. The Plan permits
the grant of Incentive Stock Options, Nonqualified Stock Options, Restricted
Stock, and Stock Awards.

        The Plan shall become effective on the date it is approved by the Board
of Directors (the "Effective Date"), subject to approval of the Plan by the
Bank's shareholders within the twelve (12) month period immediately thereafter,
and shall remain in effect as provided in Section 1.3.

        1.2     PURPOSE OF THE PLAN. The purpose of the Plan is to secure for
the Bank and its shareholders the benefits of the incentive inherent in stock
ownership in the Bank by Participants, who are responsible for its future growth
and continued success. The Plan promotes the success and enhances the value of
the Bank by encouraging the involvement of the Participants (as defined below),
and by providing Participants with an incentive for outstanding performance. The
Plan is further intended to provide flexibility to the Bank in its ability to
motivate, attract, and retain the services of Participants upon whose judgment,
interest and special effort the successful conduct of its operation largely
depends.

        1.3     DURATION OF THE PLAN. The Plan shall commence on the Effective
Date, and shall remain in effect, subject to the right of the Board of Directors
to amend or terminate the Plan at any time pursuant to Article 12, until the day
prior to the tenth (10th) anniversary of the Effective Date.

ARTICLE 2.  DEFINITIONS

        Whenever used in the Plan, the following terms shall have the meanings
set forth below:

        (a)     "AGREEMENT" means an agreement entered into by each Participant
                 and the Bank, setting forth the terms and provisions applicable
                 to Awards granted to Participants under this Plan.

        (b)     "AWARD" means, individually or collectively, a grant under this
                Plan of Incentive Stock Options, Nonqualified Stock Options,
                Restricted Stock, or Stock Awards.

        (c)     "BENEFICIAL OWNER" or "BENEFICIAL OWNERSHIP" shall have the
                meaning ascribed to such term in Rule 13d-3 of the Exchange Act.

        (d)     "BOARD" or "BOARD OF DIRECTORS" means the Board of Directors of
                the Bank.

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        (e)     "CAUSE" means: (i) willful misconduct on the part of a
                Participant that is materially detrimental to the Bank; or (ii)
                the conviction of a Participant for the commission of a felony.
                The existence of "Cause" under either (i) or (ii) shall be
                determined by the Committee. Notwithstanding the foregoing, if
                the Participant has entered into an employment agreement that is
                binding as of the date of employment termination, and if such
                employment agreement defines "Cause," and/or provides a means of
                determining whether "Cause" exists, such definition of "Cause"
                and means of determining its existence shall supersede this
                provision.

        (f)     "CODE" means the Internal Revenue Code of 1986, as amended from
                time to time, or any successor act thereto.

        (g)     "COMMITTEE" means the committee or individual appointed to
                administer the Plan and to grant Awards under the Plan, as
                specified in Article 3, and to perform the functions set forth
                therein; provided that the Board may designate the Chief
                Executive Officer (or other officer) to make grants of Awards
                with respect to certain employees and persons (other than
                himself), in which case the Chief Executive Officer will have
                the power and authority of the Committee hereunder with respect
                to such grants, and the Board may retain the authority with
                respect to the remainder of the Plan in itself or in a
                Committee.

        (h)     "COMMON STOCK" means the common stock of the Bank, par value
                $5.00 per share.

        (i)     "COMPANY" means Community Bank of Pickens County, a Georgia
                banking corporation, or any successor thereto as provided in
                Article 18.

        (j)     "DIRECTOR" means any individual who is a member of the Board of
                Directors of the Bank.

        (k)     "DISABILITY" shall have the meaning ascribed to such term in the
                Bank's long-term disability plan covering the Participant, or in
                the absence of such plan, a meaning consistent with Section
                22(e)(3) of the Code.

        (l)     "EFFECTIVE DATE" shall have the meaning ascribed to such term in
                Section 1.1.

        (m)     "EMPLOYEE" means any employee of the Bank or the Bank's
                Subsidiaries. Directors who are not otherwise employed by the
                Bank or the Bank's Subsidiaries are not considered Employees
                under this Plan.

        (n)     "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
                amended from time to time, or any successor act thereto.

        (o)     "FAIR MARKET VALUE" shall be determined as follows:

                (i)     If, on the relevant date, the Shares are traded on a
                        national or regional securities exchange or on The
                        Nasdaq Stock Market ("Nasdaq") and

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                        closing sale prices for the Shares are customarily
                        quoted, on the basis of the closing sale price on the
                        principal securities exchange on which the Shares may
                        then be traded or, if there is no such sale on the
                        relevant date, then on the immediately preceding day on
                        which a sale was reported;

                (ii)    If, on the relevant date, the Shares are not listed on
                        any securities exchange or traded on Nasdaq, but
                        nevertheless are publicly traded and reported on Nasdaq
                        without closing sale prices for the Shares being
                        customarily quoted, on the basis of the mean between the
                        closing bid and asked quotations in such other
                        over-the-counter market as reported by Nasdaq; but, if
                        there are no bid and asked quotations in the
                        over-the-counter market as reported by Nasdaq on that
                        date, then the mean between the closing bid and asked
                        quotations in the over-the-counter market as reported by
                        Nasdaq on the immediately preceding day such bid and
                        asked prices were quoted; and

                (iii)   If, on the relevant date, the Shares are not publicly
                        traded as described in (i) or (ii), on the basis of the
                        good faith determination of the Committee.

        (p)     "INCENTIVE STOCK OPTION" OR "ISO" means an option to purchase
                Shares granted under Article 6 which is designated as an
                Incentive Stock Option and is intended to meet the requirements
                of Section 422 of the Code.

        (q)     "INSIDER" means an officer, director, or a ten percent (10%)
                beneficial owner of any class of the Bank's equity securities
                that is registered pursuant to Section 12 of the Exchange Act or
                any successor provision, as "officer" and "director" are defined
                under Section 16 of the Exchange Act.

        (r)     "NAMED EXECUTIVE OFFICER" means, if applicable, a Participant
                who, as of the date of vesting and/or payout of an Award is one
                of the group of "covered employees," as defined in the
                regulations promulgated under Code Section 162(m), or any
                successor statute.

        (s)     "NONQUALIFIED STOCK OPTION" OR "NQSO" means an option to
                purchase Shares granted under Article 6, and which is not
                intended to meet the requirements of Code Section 422.

        (t)     "OPTION" means an Incentive Stock Option or a Nonqualified Stock
                Option.

        (u)     "OPTION PRICE" means the price at which a Share may be purchased
                by a Participant pursuant to an Option, as determined by the
                Committee.

        (v)     "PARTICIPANT" means an Employee or a Director who has been
                determined by the Committee to contribute significantly to the
                profits or growth of the Bank and who has been granted an Award
                under the Plan which is outstanding.

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        (w)     "PERSON" shall have the meaning ascribed to such term in Section
                3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d)
                thereof, including a "group" as defined in Section 13(d)
                thereof.

        (x)     "RETIREMENT" shall mean retiring from employment with the Bank
                or any Subsidiary on or after attaining age sixty-five (65).

        (y)     "RESTRICTED STOCK" means an Award of Common Stock granted in
                accordance with the terms of Article 8 and the other provisions
                of the Plan, and which is nontransferable and subject to a
                substantial risk of forfeiture. Shares of Common Stock shall
                cease to be Restricted Stock when, in accordance with the terms
                hereof and the applicable Agreement, they become transferable
                and free of substantial risk of forfeiture.

        (z)     "SHARES" means the shares of Common Stock of the Bank (including
                any new, additional or different stock or securities resulting
                from the changes described in Section 4.3).

        (aa)    "STOCK AWARD" means a grant of Shares under Article 8 that is
                not generally subject to restrictions and pursuant to which a
                certificate for the Shares is transferred to the Participant.

        (bb)    "SUBSIDIARY" means any company during any period in which it is
                a "subsidiary corporation" (as that term is defined in Code
                Section 424(f)) with respect to the Bank.

ARTICLE 3.  ADMINISTRATION

        3.1     THE COMMITTEE. The Plan shall be administered by the Board of
Directors or by a Committee of the Board, or by any other committee,
subcommittee, or person appointed by the Board that is granted authority to
administer the Plan in the same manner as the Committee. The members of the
Committee shall be appointed from time to time by, and shall serve at the
discretion of, the Board of Directors.

        3.2     AUTHORITY OF THE COMMITTEE. Subject to the provisions of the
Plan, the Committee shall have full power to select the Participants who are
responsible for the future growth and success of the Bank who shall participate
in the Plan (who may change from year to year); determine the size and types of
Awards; determine the terms and conditions of Awards in a manner consistent with
the Plan (including conditions on the exercisability of all or a part of an
Option, restrictions on transferability, vesting provisions on Restricted Stock
Awards, and the duration of the Awards); construe and interpret the Plan and any
agreement or instrument entered into under the Plan; establish, amend, or waive
rules and regulations for the Plan's administration; and (subject to the
provisions of Article 12) amend the terms and conditions of any outstanding
Award to the extent such terms and conditions are within the discretion of the
Committee as provided in the Plan, including accelerating the time any Option
may be exercised and establishing different terms and conditions relating to the
effect of the termination of

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employment or other services to the Bank. Further, the Committee shall make all
other determinations which may be necessary or advisable in the Committee's
opinion for the administration of the Plan. All expenses of administering this
Plan shall be borne by the Bank.

        3.3     DECISIONS BINDING. All determinations and decisions made by the
Committee pursuant to the provisions of the Plan and all related orders and
resolutions of the Board shall be final, conclusive and binding on all Persons,
including the Bank, the shareholders, Participants and their estates and
beneficiaries.

ARTICLE 4.  SHARES SUBJECT TO THE PLAN

        4.1     NUMBER OF SHARES. Subject to adjustment as provided in Section
4.3, the total number of Shares available for grant of Awards under the Plan
shall be equal to an aggregate of seventy-five thousand (75,000) Shares. The
Shares may, in the discretion of the Bank, be either authorized but unissued
Shares or Shares held as treasury shares, including Shares purchased by the
Bank, whether on the market or otherwise. The following rules shall apply for
purposes of the determination of the number of Shares available for grant under
the Plan:

                (a)     The grant of an Option, Stock Award, or Restricted Stock
                        Award shall reduce the Shares available for grant under
                        the Plan by the number of Shares subject to such Award.

                (b)     While an Option, Stock Award, or Restricted Stock Award
                        is outstanding, it shall be counted against the
                        authorized pool of Shares, regardless of its vested
                        status.

        4.2     LAPSED AWARDS. If any Award granted under this Plan is canceled,
terminates, expires, or lapses for any reason, or if Shares are withheld in
payment of the Option Price or for withholding taxes, any Shares subject to such
Award or that are withheld shall again be available for the grant of an Award
under the Plan. If prior to the Award's cancellation, termination, expiration,
or lapse, the holder of the Award at any time received one or more "benefits of
ownership" pursuant to such Award (as defined by the Securities and Exchange
Commission, pursuant to any rule or interpretation promulgated under Section 16
of the Exchange Act), the Shares subject to such Award shall not again be made
available for regrant under the Plan.

        4.3     ADJUSTMENTS IN AUTHORIZED SHARES. In the event of any change in
corporate capitalization, such as a stock split, or a corporate transaction,
such as any merger, consolidation, separation, including a spin-off, or other
distribution of stock or property of the Bank, any reorganization (whether or
not such reorganization comes within the definition of such term in Code Section
368) or any partial or complete liquidation of the Bank, such adjustment shall
be made in the number and class of Shares which may be delivered under the Plan,
and in the number and class of and/or price of Shares subject to outstanding
Awards granted under the Plan, as may be determined to be appropriate and
equitable by the Committee, in its sole discretion, to prevent dilution or
enlargement of rights; provided, however, that the number of Shares subject to
any Award shall always be a whole number and the Committee shall make such
adjustments as are necessary to insure Awards of whole Shares.

                                       -5-
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ARTICLE 5.  ELIGIBILITY AND PARTICIPATION

        Any Participant shall be eligible to receive an Award under the Plan. In
determining the individuals to whom such an Award shall be granted and the
number of Shares which may be granted pursuant to that Award, the Committee
shall take into account the duties of the respective individual, his or her
present and potential contributions to the success of the Bank or any
Subsidiary, and such other factors as the Committee shall deem relevant in
connection with accomplishing the purpose of the Plan.

ARTICLE 6.  STOCK OPTIONS

        6.1     GRANT OF OPTIONS. Subject to the terms and provisions of the
Plan, Options may be granted to Participants at any time and from time to time
as shall be determined by the Committee. The Committee shall have discretion in
determining the number of Shares subject to Options granted to each Participant.
No Participant may be granted ISOs (under the Plan and all other incentive stock
option plans of the Bank and any Subsidiary) that are first exercisable in any
calendar year for Common Stock having an aggregate Fair Market Value (determined
as of the date an Option is granted) that exceeds One Hundred Thousand Dollars
($100,000). The preceding annual limit shall not apply to NQSOs. The Committee
may grant a Participant ISOs, NQSOs, or a combination thereof, and may vary such
Awards among Participants; provided that only an Employee may be granted ISOs.
The maximum number of Shares subject to Options which can be granted under the
Plan during any calendar year to any individual is 30,000 Shares.

        6.2     AGREEMENT. Each Option grant shall be evidenced by an Agreement
that shall specify the Option Price, the duration of the Option, the number of
Shares to which the Option pertains, the vesting schedule of the Option, and
such other provisions as the Committee shall determine. The Option Agreement
shall further specify whether the Award is intended to be an ISO or an NQSO. Any
portion of an Option that is not designated as an ISO or otherwise fails or is
not qualified as an ISO (even if designated as an ISO) shall be a NQSO. The
vesting schedule of the Option contained in the Option Agreement shall be set by
the Committee to encourage the Participant to remain involved in the Bank by
providing a vesting period of at least three years of approximately equal
percentages and no acceleration of option vesting pursuant to any Change in
Control provision shall occur if the Change in Control occurs within the first
three years of the grant of the Option.

        6.3     OPTION PRICE. The Option Price for each grant of an ISO shall
not be less than one hundred percent (100%) of the Fair Market Value of a Share
on the date the Option is granted. In no event, however, shall any Participant
who owns (within the meaning of Section 424(d) of the Code) stock of the Bank
possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of the Bank be eligible to receive an ISO at an Option Price
less than one hundred ten percent (110%) of the Fair Market Value of a share on
the date the ISO is granted. The Option Price for each grant of a NQSO shall be
established by the Committee and, in its discretion, may be equal to, or more
than, the Fair Market Value of a Share on the date the Option is granted;
provided, however, that the Option Price shall not be less than the Fair Market
Value. The Committee is authorized to issue Options, whether ISOs or NQSOs,

                                       -6-
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at an Option Price in excess of the Fair Market Value on the date the Option is
granted (the so-called "Premium Price" Option) to encourage superior
performance.

        6.4     DURATION OF OPTIONS. The duration of the Options shall be
subject to the following:

                (a)     Each Option shall expire at such time as the Committee
                        shall determine at the time of grant; provided, however,
                        that no Option shall be exercisable later than the tenth
                        (10th) anniversary date of its grant; provided, further,
                        however, that any ISO granted to any Participant who at
                        such time owns (within the meaning of Section 424(d) of
                        the Code) stock of the Bank possessing more than ten
                        percent (10%) of the total combined voting power of all
                        classes of stock of the Bank, shall not be exercisable
                        later than the fifth (5th) anniversary date of its
                        grant.

                (b)     If a Participant's service is terminated by the Bank for
                        Cause, all outstanding unvested Options granted to such
                        Participant shall expire immediately, and the
                        Participant's right to exercise any then outstanding
                        Options (whether or not vested) shall terminate
                        immediately upon the date that the Committee determines
                        is the Participant's date of termination of service.

                (c)     Subject to any "Change of Control" provision that may be
                        included in an Agreement, if the Participant's service
                        to the Bank is terminated by the Bank without Cause, or
                        the Participant voluntarily terminates his or her
                        service (including upon Retirement, death or
                        Disability), all outstanding unvested Options shall
                        expire as of the date of termination of service, and any
                        Options vested as of the date of termination shall
                        remain exercisable at any time prior to their expiration
                        date or for three (3) months (twelve (12) months if
                        termination is due to death or Disability) after the
                        date of termination of service, whichever period is
                        shorter.

                (d)     Notwithstanding any other provision in the Plan, if the
                        Bank becomes "critically undercapitalized" for the
                        purposes of Section 38 of the Federal Deposit Insurance
                        Act and the regulations of the primary federal regulator
                        of the Bank (the "Regulator"), the Regulator may direct
                        the Bank to require the Participant to exercise (if
                        exercisable) or forfeit his or her Option. The Company
                        will notify the Participant within forty-five (45) days
                        from the date the Regulator notifies the Bank in writing
                        that the Participant must exercise or forfeit the
                        Option. The Option will terminate if not exercised
                        within twenty-one (21) days of the Bank's notification
                        to the Participant. The Company agrees to comply with
                        any Regulator request that the Bank invoke its right to
                        require the Participant to exercise or forfeit his or
                        her Option under the circumstances stated above.

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        6.5     EXERCISE OF OPTIONS. Options granted under the Plan shall be
exercisable at such times and be subject to such restrictions and conditions as
the Committee shall in each instance approve, including conditions related to
the employment of the Participant with the Bank or any Subsidiary, which need
not be the same for each grant or for each Participant. Each Option shall be
exercisable for such number of Shares and at such time or times, including
periodic installments, as may be determined by the Committee at the time of the
grant. The Committee may provide in the Agreement for automatic accelerated
vesting and other rights upon the occurrence of a Change in Control (as defined
in Section 11.1) of the Company. Except as otherwise provided in the Agreement
and Article 11, the right to purchase Shares that are exercisable in periodic
installments shall be cumulative so that when the right to purchase any Shares
has accrued, such Shares or any part thereof may be purchased at any time
thereafter until the expiration or termination of the Option.

        6.6     PAYMENT. Options shall be exercised by the delivery of a written
notice of exercise to the Bank, setting forth the number of Shares with respect
to which the Option is to be exercised, accompanied by full payment for the
Shares. The Option Price upon exercise of any Option shall be payable to the
Bank in full, either: (a) in cash, (b) cash equivalent approved by the
Committee, (c) if approved by the Committee, by tendering previously acquired
Shares (or delivering a certification of ownership of such Shares) having an
aggregate Fair Market Value at the time of exercise equal to the total Option
Price (provided that the Shares which are tendered must have been held by the
Participant for six months, if required for accounting purposes, and for the
period required by law, if any, prior to their tender to satisfy the Option
Price), or (d) by a combination of (a), (b) and (c). The Committee also may
allow cashless exercises only as permitted under Federal Reserve Board's
Regulation T, subject to applicable securities law restrictions. As soon as
practicable after receipt of a written notification of exercise and full
payment, the Bank shall deliver to the Participant, in the Participant's name,
Share certificates in an appropriate amount based upon the number of Shares
purchased under the Option(s), and may place appropriate legends on the
certificates representing such Shares.

        6.7     LIMITED TRANSFERABILITY. Any Option that is granted pursuant to
any Agreement shall not be transferable by the Participant and such Option thus
shall be exercisable in the Participant's lifetime only by the Participant.

        6.8     SHAREHOLDER RIGHTS. No Participant shall have any rights as a
shareholder with respect to Shares subject to his or her Option until the
issuance of such Shares to the Participant pursuant to the exercise of such
Option

ARTICLE 7.  RESTRICTED STOCK; STOCK AWARDS

        7.1     GRANTS. The Committee may from time to time in its discretion
grant Restricted Stock and Stock Awards to Participants and may determine the
number of Shares of Restricted Stock or Stock Awards to be granted. The
Committee shall determine the terms and conditions of, and the amount of
payment, if any, to be made by the Participant for such Shares or Restricted
Stock. A grant of Restricted Stock may, in addition to other conditions, require
the Participant to pay for such Shares of Restricted Stock. Each grant of
Restricted Stock shall be evidenced by an

                                       -8-
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Agreement containing terms and conditions not inconsistent with the Plan as the
Committee shall determine to be appropriate in its sole discretion. The maximum
number of Shares of Restricted Stock or Stock Awards which can be granted under
the Plan during any calendar year to any individual is 30,000 Shares.

        7.2     RESTRICTED PERIOD; LAPSE OF RESTRICTIONS. At the time a grant of
Restricted Stock is made, the Committee shall establish a period or periods of
time (the "Restricted Period") applicable to such grant which, unless the
Committee otherwise provides, shall not be less than one (1) year. Subject to
the other provisions of this Article 7, at the end of the Restricted Period all
restrictions shall lapse and the Restricted Stock shall vest in the Participant.
At the time a grant is made, the Committee may, in its discretion, prescribe
conditions for the incremental lapse of restrictions during the Restricted
Period and for the lapse or termination of restrictions upon the occurrence of
other conditions in addition to or other than the expiration of the Restricted
Period with respect to all or any portion of the Restricted Stock. Such
conditions may, but need not, include:

                (a)     The death, Disability or Retirement of the Employee to
                        whom Restricted Stock is granted, or

                (b)     The occurrence of a Change in Control (as defined in
                        Section 11.1); provided that no acceleration pursuant to
                        a Change in Control shall occur if the Change in Control
                        occurs within the first three years of the grant of the
                        Restricted Stock.

The Committee may also, in its discretion, shorten or terminate the Restricted
Period, or waive any conditions for the lapse or termination of restrictions
with respect to all or any portion of the Restricted Stock at any time after the
date the grant is made.

        7.3     RIGHTS OF HOLDER; LIMITATIONS THEREON. Upon a grant of
Restricted Stock, a stock certificate (or certificates) representing the number
of Shares of Restricted Stock granted to the Participant shall be registered in
the Participant's name and shall be held in custody by the Bank or a bank
selected by the Committee for the Participant's account. Following such
registration, the Participant shall have the rights and privileges of a
shareholder as to such Restricted Stock, including the right to receive
dividends, if and when declared by the Board of Directors, and to vote such
Restricted Stock, except that the right to receive cash dividends shall be the
right to receive such dividends either in cash currently or by payment in
Restricted Stock, as the Committee shall determine, and except further that, the
following restrictions shall apply:

                (a)     The Participant shall not be entitled to delivery of a
                        certificate until the expiration or termination of the
                        Restricted Period for the Shares represented by such
                        certificate and the satisfaction of any and all other
                        conditions prescribed by the Committee;

                (b)     None of the Shares of Restricted Stock may be sold,
                        transferred, assigned, pledged, or otherwise encumbered
                        or disposed of during the Restricted Period and until
                        the satisfaction of any and all other conditions
                        prescribed by the Committee; and

                                       -9-
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                (c)     All of the Shares of Restricted Stock that have not
                        vested shall be forfeited and all rights of the
                        Participant to such Shares of Restricted Stock shall
                        terminate without further obligation on the part of the
                        Bank, unless the Participant has remained an employee of
                        (or non-employee Director of) the Bank or any of its
                        Subsidiaries, until the expiration or termination of the
                        Restricted Period and the satisfaction of any and all
                        other conditions prescribed by the Committee applicable
                        to such Shares of Restricted Stock. Upon the forfeiture
                        of any Shares of Restricted Stock, such forfeited Shares
                        shall be transferred to the Bank without further action
                        by the Participant and shall, in accordance with Section
                        4.2, again be available for grant under the Plan. If the
                        Participant paid any amount for the Shares of Restricted
                        Stock that are forfeited, the Bank shall pay the
                        Participant the lesser of the Fair Market Value of the
                        Shares on the date they are forfeited or the amount paid
                        by the Participant.

        With respect to any Shares received as a result of adjustments under
Section 4.3 hereof and any Shares received with respect to cash dividends
declared on Restricted Stock, the Participant shall have the same rights and
privileges, and be subject to the same restrictions, as are set forth in this
Article 7.

        7.4     DELIVERY OF UNRESTRICTED SHARES. Upon the expiration or
termination of the Restricted Period for any Shares of Restricted Stock and the
satisfaction of any and all other conditions prescribed by the Committee, the
restrictions applicable to such Shares of Restricted Stock shall lapse and a
stock certificate for the number of Shares of Restricted Stock with respect to
which the restrictions have lapsed shall be delivered, free of all such
restrictions except any that may be imposed by law, a shareholders' agreement or
any other agreement, to the holder of the Restricted Stock. The Company shall
not be required to deliver any fractional Share but will pay, in lieu thereof,
the Fair Market Value (determined as of the date the restrictions lapse) of such
fractional Share to the holder thereof. Concurrently with the delivery of a
certificate for Restricted Stock, the holder shall be required to pay an amount
necessary to satisfy any applicable federal, state, and local tax requirements
as set out in Article 15 below.

        7.5     NONASSIGNABILITY OF RESTRICTED STOCK. No grant of, nor any right
or interest of a Participant in or to, any Restricted Stock, or in any
instrument evidencing any grant of Restricted Stock under the Plan, may be
assigned, encumbered, or transferred.

ARTICLE 8.  BENEFICIARY DESIGNATION

        To the extent applicable, each Participant under the Plan may, from time
to time, name any beneficiary or beneficiaries (who may be named contingently or
successively) to whom any benefit under the Plan is to be paid in case of his or
her death before he or she receives any or all of such benefit. Each such
designation shall revoke all prior designations by the same Participant, shall
be in a form prescribed by the Bank and shall be effective only when filed by
the Participant, in writing, with the Bank during the Participant's lifetime. In
the absence of any such designation, benefits remaining unpaid at the
Participant's death shall be paid to the Participant's estate. If required, the
spouse of a married Participant domiciled in a community

                                       -10-
<PAGE>

property jurisdiction shall join in any designation of a beneficiary or
beneficiaries other than the spouse.

ARTICLE 9.  DEFERRALS

        The Committee may permit a Participant to defer to another plan or
program such Participant's receipt of Shares or cash that would otherwise be due
to such Participant by virtue of the exercise of an Option or the vesting of
Restricted Stock. If any such deferral election is required or permitted, the
Committee shall, in its sole discretion, establish rules and procedures for such
payment deferrals.

ARTICLE 10.  RIGHTS OF EMPLOYEES

        10.1    EMPLOYMENT. Nothing in the Plan shall interfere with or limit in
any way the right of the Bank or a Subsidiary to terminate any Participant's
employment by, or performance of services for, the Bank at any time, nor confer
upon any Participant any right to continue in the employ or service of the Bank
or a Subsidiary. For purposes of the Plan, transfer of employment of a
Participant between the Bank and any one of its Subsidiaries (or between
Subsidiaries) shall not be deemed a termination of employment.

        10.2    PARTICIPATION. No Employee shall have the right to be selected
to receive an Award under this Plan, or, having been so selected, to be selected
to receive a future Award.

ARTICLE 11.  CHANGE IN CONTROL

        11.1    DEFINITION. For purposes of the Plan, a "Change in Control"
means any of the following events:

                (a)     The acquisition (other than from the Company) by any
                        Person of Beneficial Ownership of twenty percent (20%)
                        or more of the combined voting power of the Company's
                        then outstanding voting securities; provided, however,
                        that for purposes of this Section 11.1, Person shall not
                        include any person who on the date hereof owns ten
                        percent (10%) or more of the Company's outstanding
                        securities, and a Change in Control shall not be deemed
                        to occur solely because twenty percent (20%) or more of
                        the combined voting power of the Company's then
                        outstanding securities is acquired by (i) a trustee or
                        other fiduciary holding securities under one (1) or more
                        employee benefit plans maintained by the Company or any
                        of its subsidiaries, or (ii) any corporation, which,
                        immediately prior to such acquisition, is owned directly
                        or indirectly by the shareholders of the Company in the
                        same proportion as their ownership of stock in the
                        Company immediately prior to such acquisition.

                (b)     Approval by shareholders of the Company of (1) a merger
                        or consolidation involving the Company if the
                        shareholders of the Company, immediately

                                       -11-
<PAGE>

                        before such merger or consolidation do not, as a result
                        of suchmerger or consolidation, own, directly or
                        indirectly, more than fifty percent (50%) of the
                        combined voting power of the then outstanding voting
                        securities of the corporation resulting from such merger
                        or consolidation in substantially the same proportion as
                        their ownership of the combined voting power of the
                        voting securities of the Company outstanding immediately
                        before such merger or consolidation, or (2) a complete
                        liquidation or dissolution of the Company or an
                        agreement for the sale or other disposition of all or
                        substantially all of the assets of the Company.

                (c)     A change in the composition of the Board such that the
                        individuals who, as of the Effective Date, constitute
                        the Board (such Board shall be hereinafter referred to
                        as the "Incumbent Board") cease for any reason to
                        constitute at least a majority of the Board; provided,
                        however, for purposes of this Section 11.1 that any
                        individual who becomes a member of the Board subsequent
                        to the Effective Date whose election, or nomination for
                        election by the Company's shareholders, was approved by
                        a vote of at least a majority of those individuals who
                        are members of the Board and who were also members of
                        the Incumbent Board (or deemed to be such pursuant to
                        this proviso) shall be considered as though such
                        individual were a member of the Incumbent Board; but,
                        provided, further, that any such individual whose
                        initial assumption of office occurs as a result of
                        either an actual or threatened election contest (as such
                        terms are used in Rule 14a-11 of Regulation 14A
                        promulgated under the Exchange Act, including any
                        successor to such Rule), or other actual or threatened
                        solicitation of proxies or consents by or on behalf of a
                        Person other than the Board, shall not be so considered
                        as a member of the Incumbent Board.

        11.2    LIMITATION ON AWARDS Notwithstanding any other provisions of the
Plan and unless provided otherwise in the Agreement, if the right to receive or
benefit from any Award under this Plan, either alone or together with payments
that a Participant has the right to receive from the Company or a Subsidiary,
would constitute a "parachute payment" (as defined in Section 280G of the Code),
all such payments shall be reduced to the largest amount that will result in no
portion being subject to the excise tax imposed by Section 4999 of the Code.

ARTICLE 12.  AMENDMENT, MODIFICATION, AND TERMINATION

        12.1    AMENDMENT, MODIFICATION, AND TERMINATION. The Board may, at any
time and from time to time, alter, amend, suspend, or terminate the Plan in
whole or in part; provided, that, unless approved by the holders of a majority
of the total number of Shares of the Bank represented and voted at a meeting at
which a quorum is present, no amendment shall be made to the Plan if such
amendment would (a) materially modify the eligibility requirements provided in
Article 5; (b) increase the total number of Shares (except as provided in
Section 4.3) which may be granted under the Plan; (c) extend the term of the
Plan; or (d) amend the Plan in any other manner which the Board, in its
discretion, determines should become effective only if approved

                                       -12-
<PAGE>

by the shareholders even if such shareholder approval is not expressly
required by the Plan or by law.

        12.2    AWARDS PREVIOUSLY GRANTED. No termination, amendment or
modification of the Plan shall adversely affect in any material way any Award
previously granted under the Plan, without the written consent of the
Participant holding such Award. The Committee shall, with the written consent of
the Participant holding such Award, have the authority to cancel Awards
outstanding and grant replacement Awards therefor.

        12.3    COMPLIANCE WITH CODE SECTION 162(M). At all times when the
Committee determines that compliance with Code Section 162(m) is required or
desired, all Awards granted under this Plan to Named Executive Officers shall
comply with the requirements of Code Section 162(m). In addition, in the event
that changes are made to Code Section 162(m) to permit greater flexibility with
respect to any Award or Awards under the Plan, the Committee may, subject to
this Article, make any adjustments it deem appropriate.

ARTICLE 13.  CANCELLATION AND RESCISSION OF AWARDS

        The Committee may provide in the Award Agreement that if, at any time
during the period that any Award is or may yet become exercisable in whole or in
part, or at any time within six (6) months prior to, or after, the termination
of employment with the Bank, a Participant engages in any "Detrimental Activity"
(as defined below), the Committee may, notwithstanding any other provision in
this Plan to the contrary, cancel, rescind, suspend, withhold or otherwise
restrict or limit any unexpired, unpaid, or deferred Award as of the first date
the Participant engages in the Detrimental Activity, unless sooner terminated by
operation of another term of this Plan or any other agreement. Without limiting
the generality of the foregoing, the Agreement may provide that the Participant
shall also pay to the Bank any gain realized by the Participant from exercising
all or any portion of the Awards hereunder during a period beginning six (6)
months prior to, or after, the date on which the Participant enters into such
activity.

        For purposes of this Agreement, "Detrimental Activity" shall mean to
include any of the following: (i) engaging in any commercial activity in
competition with any part of the business of the Bank; (ii) diverting or
attempting to divert from the Bank business of any kind, including, without
limitation, interference with any business relationship with suppliers,
customers, licensees, licensors, or contractors; (iii) making, or causing or
attempting to cause any other person to make, any statement, either written or
oral, or conveying any information about the Bank which is disparaging or which
in any way reflects negatively upon the Bank; (iv) engaging in any other
activity that is inimical, contrary, or harmful to the interests of the Bank,
including influencing or advising any person who is employed by or in the
service of the Bank to leave such employment or service to compete with the Bank
or to enter into the employment or service of any actual or prospective
competitor of the Bank, or influencing or advising any competitor of the Bank to
employ or to otherwise engage the services of any person who is employed by the
Bank or in the service of the Bank, or improperly disclosing or otherwise
misusing any confidential information regarding the Bank; or (v) the refusal or
failure of a Participant to provide, upon the request of the Bank, a
certification, in a form satisfactory to the Bank, that he or she is in full
compliance with the terms and conditions of the Plan; provided, that the

                                       -13-
<PAGE>

Committee may provide in the Agreement that only certain of the restrictions
provided above apply for purposes of the Award Agreement.

        Should any provision to this Article be held to be invalid or illegal,
such illegality shall not invalidate the whole of this Article, but, rather, the
Plan shall be construed as if it did not contain the illegal part or narrowed to
permit its enforcement, and the rights and obligations of the parties shall be
construed and enforced accordingly.

ARTICLE 14.  WITHHOLDING

        14.1    TAX WITHHOLDING. The Company shall have the power and the right
to deduct or withhold, or require a Participant to remit to the Bank, an amount
sufficient to satisfy federal, state, and local taxes (including the
Participant's FICA obligation) required by law to be withheld with respect to
any taxable event arising in connection with an Award under this Plan.

        14.2    SHARE WITHHOLDING. With respect to withholding required upon the
exercise of Options, or upon any other taxable event arising as a result of
Awards granted hereunder which are to be paid in the form of Shares,
Participants may elect, subject to the approval of the Committee, to satisfy the
withholding requirement, in whole or in part, by having the Bank withhold Shares
having a Fair Market Value on the date the tax is to be determined equal to the
minimum statutory total tax which could be imposed on the transaction. All
elections shall be irrevocable, made in writing, signed by the Participant, and
elections by Insiders shall additionally comply with all legal requirements
applicable to Share transactions by such Participants.

ARTICLE 15.  INDEMNIFICATION

        Each person who is or shall have been a member of the Committee, or the
Board, shall be indemnified and held harmless by the Bank against and from any
loss, cost, liability or expense that may be imposed upon or reasonably incurred
by him or her in connection with or resulting from any claim, action, suit or
proceeding to which he or she may be a party or in which he or she may be
involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him or her in settlement thereof,
with the Bank's approval, or paid by him or her in satisfaction of any judgment
in any such action, suit or proceeding against him or her, provided he or she
shall give the Bank an opportunity, at its own expense, to handle and defend the
same before he or she undertakes to handle and defend it on his or her own
behalf. The foregoing right of indemnification shall be in addition to any other
rights of indemnification to which such persons may be entitled under the Bank's
Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any
power that the Bank may have to indemnify them or hold them harmless.

ARTICLE 16.  SUCCESSORS

        All obligations of the Bank under the Plan, with respect to Awards
granted hereunder, shall be binding on any successor to the Bank, whether the
existence of such successor is the

                                       -14-
<PAGE>

result of a direct or indirect purchase, merger, consolidation or otherwise, of
all or substantially all of the business and/or assets of the Bank.

ARTICLE 17.  LEGAL CONSTRUCTION.

        Except where otherwise indicated by the context, any masculine term used
herein shall also include the feminine; the plural shall include the singular
and the singular shall include the plural.

        17.1    SEVERABILITY. If any provision of the Plan shall be held illegal
or invalid for any reason, the illegality or invalidity shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced as if
the illegal or invalid provision had not been included.

        17.2    REQUIREMENTS OF LAW. The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules and
regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.

        17.3    REGULATORY APPROVALS AND LISTING. The Company shall not be
required to issue any certificate or certificates for Shares under the Plan
prior to (i) obtaining any approval from any governmental agency which the Bank
shall, in its discretion, determine to be necessary or advisable, (ii) the
admission of such shares to listing on any national securities exchange or
Nasdaq on which the Bank's Shares may be listed, and (iii) the completion of any
registration or other qualification of such Shares under any state or federal
law or ruling or regulation of any governmental body which the Bank shall, in
its sole discretion, determine to be necessary or advisable.

        To the extent applicable, if required by the then-current Section 16 of
the Exchange Act, any "derivative security" or "equity security" offered
pursuant to the Plan to any Insider may not be sold or transferred for at least
six (6) months after the date of grant of such Award. The terms "equity
security" and "derivative security" shall have the meanings ascribed to them in
the then-current Rule 16(a) under the Exchange Act.

        17.4    SECURITIES LAW COMPLIANCE. To the extent applicable, with
respect to Insiders, transactions under this Plan are intended to comply with
all applicable conditions of Rule 16b-3 or its successors under the Exchange
Act. To the extent any provisions of the Plan or action by the Committee fails
to so comply, it shall be deemed null and void, to the extent permitted by law
and deemed advisable by the Committee.

        17.5    GOVERNING LAW. To the extent not preempted by Federal law, the
Plan, and all agreements hereunder, shall be construed in accordance with and
governed by the laws of the State of Georgia.

                                       -15-Notice of Extension of Amended and Restated Exclusive Supply Agreement

 Exhibit 10.69 
  
 January 6, 2005 
  
 Mr. Charles M. Swoboda 
 President & CEO 
 Cree, Inc. 
 4600 Silicon Drive 
 Durham, NC 27703 
  
 Re: Notice of Extension of Amended and Restated Exclusive Supply Agreement 
  
 Dear Chuck: 
  
 On behalf of Charles & Colvard, Ltd. (“C&C,” formerly known as C3, Inc.) it is my pleasure to provide written notice to Cree, Inc. (“Cree,” formerly known as Cree Research, Inc.) of the
exercise of the option provided in Section 3.2 of the Amended and Restated Exclusive Supply Agreement dated June 6, 1997 by an between C&C and Cree (the “Agreement”) to extend the term of the Agreement for an additional period of 10
years beginning July 15, 2005 and expiring on July 14, 2015. 
  
 Please
acknowledge receipt of this notice by signing and returning a copy of this notice to my attention. 
  

			
	CHARLES & COLVARD, LTD.
		
	By:	 	 /s/ Robert S. Thomas

	 	 	Robert S. Thomas
	 	 	President & CEO

  

			
	CREE, INC.
		
	By:	 	 /s/ Charles M. Swoboda

	 	 	Charles M. Swoboda
	 	 	President & CEO

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