Document:

Options Agreement

 Exhibit 10.3 
 OPTION AGREEMENT 
 THIS OPTION AGREEMENT, made this 22nd day of June, 2009, by and between
TOUCHMARK BANCSHARES, INC., a Georgia corporation (herein referred to as the “Seller”), and GWINNETT CLINIC, LTD., a Georgia corporation (herein referred to as the “Purchaser”). 
 R E C I T A L S 
 WHEREAS, Seller is
the owner of all that tract or parcel of land lying and being in Land Lot 44 of the 1st District, Fulton County, Georgia, being more particularly described on Exhibit “A” attached hereto and incorporated herein by this reference (the
“Property”); and 
 WHEREAS, Seller desires to grant to Purchaser an option to purchase the Property. 
 NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by each of the parties hereto, the parties hereto agree as follows: 
 1. GRANT OF OPTION. Seller hereby
grants and conveys to Purchaser, or its successors and assigns, an irrevocable and exclusive option to purchase from Seller, the Property, upon all the terms and conditions hereinafter set forth (the “Option”). 
 2. TERM OF OPTION. The term of the Option shall begin on June 22, 2009, and extend through December 22, 2010 (the “Option Term”). Purchaser
may exercise the Option at any time during the Option Term upon providing written notice to Seller, and the conveyance of the Property as provided herein shall occur no sooner than thirty (30) days from the date that Seller receives said
notice, unless waived by Seller; PROVIDED, HOWEVER, that Purchaser shall only have the right to exercise the Option in the event the Seller is unable to obtain approval from the Office of the Comptroller of the Currency (“OCC”) and the
Federal Deposit Insurance Corporation (“FDIC”) for the operation of a bank branch site upon the Property. 
 3. OPTION PRICE. If Purchaser
exercises its Option as provided herein, Seller shall sell and transfer the Property to Purchaser and Purchaser shall purchase the Property from Seller, and Purchaser shall pay to Seller the purchase price of ONE MILLION SIX HUNDRED THOUSAND AND
NO/100THS DOLLARS ($1,600,000.00), plus all expenses and closing costs incurred in connection with the initial acquisition by Seller of the Property from the FDIC. (“Purchase Price”). The Purchase Price shall be paid to Seller by Purchaser
at Closing, as hereinafter defined, in cash or immediately collectible funds. 
 4. TIME OF ESSENCE. Time shall be deemed as of the essence of this
Agreement. 
 5. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective heirs,
successors and assigns. 
 6. CONVEYANCE OF TITLE. The Seller shall convey good and marketable fee simple title to the Property to the Purchaser
pursuant to recordable limited warranty deed, free of title 

 
exceptions except those which are approved by Purchaser. Up through the Closing Date, as hereinafter defined, the Purchaser may deliver to the Seller a
statement of any objections to the Seller’s title and the Seller shall have the right (but not the obligation) within a reasonable time thereafter in which to cure any such objections. In the event that the Seller fails to cure any such
objections, the Purchaser may (i) terminate this Agreement, or (ii) waive such objections and close the transaction contemplated by this Agreement in accordance with all of the terms and provisions hereof. At any time prior to the Closing
Date, the Purchaser shall have the right to check down the title from and after the effective date of the preliminary title examination contemplated in this Paragraph 6 and deliver to the Seller a written statement of any objection which appears in
the public records of Fulton County, Georgia and affects title to the Property occurring subsequent to the preliminary title examination. The Seller shall have until the Closing Date to cure, at its expense, any such objection. In the event the
Seller fails or refuses to cure such objection prior to the Closing Date, the Purchaser shall have the same rights with respect to such failure or refusal set forth in this Paragraph 6 as to preliminary title objections. 
 7. NOTICES. Any notice or communication required or permitted hereunder shall be given in writing, sent (a) personal delivery, (b) expedited delivery
service with proof of delivery, (c) United States mail, postage prepaid, registered or certified mail, return receipt requested or (d) prepaid telegram or telex (provided that such telegram or telex is confirmed by expedited delivery
service or by mail in the manner previously described), addressed as follows: 
  

			
	As to Seller:	  	Touchmark Bancshares, Inc.
		  	3740 Davinci Court, Suite 150
		  	Norcross, Georgia 30092
		
	As to Purchaser:	  	Gwinnett Clinic, Ltd.
		  	475 Philip Boulevard, Suite 100
		  	Lawrenceville, Georgia 30045

 Either party hereto may change the address set forth above for giving notice to such party by giving written
notice to the other party in the manner set forth above. Any such notice or communication shall be deemed to have been given either (i) in the case of hand delivery, at the time of personal delivery, (ii) in the case of delivery service or
mail, as of the date of first attempted delivery, or (iii) in the case of telegram or telex, upon receipt. 
 8. REPRESENTATIONS. 
 A. Representations of Seller. The Seller makes the following representations, to the best knowledge of Seller but without any independent
investigation: 
 (i) Seller owns fee simple title to the Property, subject to the title exceptions shown in Seller’s title insurance
commitment; 
 (ii) Seller has not engaged any broker or agent with respect to the purchase and sale contemplated under this Agreement;

 (iii) Seller has not received any notice from any governmental authority of any taking of the Property or
any portion thereof by eminent domain and, to its knowledge, no condemnation or any taking of the Property is contemplated or threatened by any such governmental authority; and 
 B. Seller will not take, or cause to be taken, any action which would cause or threaten to cause, any of the representations stated herein to become
incorrect or untrue. 
 9. PURCHASER’S REPRESENTATION. Purchaser hereby represents to the Seller that it has not engaged any broker or agent with
respect to the purchase and sale contemplated under this Agreement. 
 10. CLOSING. 
 A. General. The Closing of the sale and purchase of the transaction contemplated herein (“Closing”) shall be on or before thirty
(30) days after the date that Seller receives written notice of Purchaser’s exercise of the Option (the “Closing Date”), on a date and at a time designated by Purchaser upon five (5) days advance notice to Seller. The
Closing shall take place in the offices of the law firm of Andersen, Tate & Carr, P.C. in Lawrenceville, Georgia, or at such other place designated by Seller. At the Closing, the Seller shall execute and deliver to the Purchaser a limited
warranty deed conveying good and marketable fee simple title to the Property free and clear of all liens and encumbrances except the Permitted Title Exceptions. 
 B. Taxes. Real property ad valorem taxes assessed against the Property for the year in which the Closing occurs shall be prorated as of the Closing Date. In the event tax bills for the year in which the Closing
occurs have not been issued at the time of the Closing, the proration shall be made on the basis of the taxes actually paid for the immediately preceding year. In the event the amount of such taxes is not finally determined at the date of Closing,
an appropriate adjustment shall be made between Seller and Purchaser by payment of the difference, if any, when the actual amount of such taxes becomes known. If the Property is included within a larger parcel for taxing purposes, Seller agrees to
cause the taxes to be paid on the real property of which the Property forms a part on or before the date such tax bills become delinquent. At the time that the tax bills are received for the year in which the Closing occurs (whether before or after
the Closing), the Purchaser and the Seller shall make any adjustments made necessary by reason thereof. 
 C. Documents. The Seller
and the Purchaser agree that such documents as may be legally necessary or appropriate to carry out the terms of this Agreement shall be executed and delivered by each party to the other at the Closing, including, but not limited to, an affidavit
from the Seller in form and content acceptable to Purchaser’s title insurance company. 
 D. Expenses of Closing. The Purchaser
shall pay the cost of the State of Georgia transfer tax due on the conveyance of the Property. The Purchaser shall pay the cost of the title examination, title certification costs, title insurance premiums, recording fees and all fees incurred in
connection with the Closing. Each party shall bear the expense of its own legal counsel. 

 11. MISCELLANEOUS. 
 A. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable against the parties hereto and their respective heirs, legal representatives, successors and
assigns. 
 B. Date of this Agreement. In the event that any date or deadline set forth in this Agreement occurs on a Saturday, Sunday
or legal holiday, such date or deadline shall automatically be extended to the next date which is not a Saturday, Sunday or legal holiday. The date of “final execution” and the “Effective Date” of this Agreement shall be the date
of the last signature of Purchaser and Seller to this Agreement. 
 C. Assignment. Purchaser shall not be entitled to assign its
rights hereunder except to an entity that controls, is controlled by, or is under the same control as Purchaser, or in which Purchaser is a general partner or managing member, without Seller’s prior written consent. “Control”, as used
in this Paragraph shall mean beneficial ownership equal to or greater than 30% of the entity. 
 D. Possession. Full and complete
possession of the Property shall be delivered to Purchaser at Closing. 
 E. Counterparts. This Agreement may be executed in several
counterparts, each of which shall constitute an original and all of which together shall constitute one and the same instrument. 
 [SIGNATURES BEGIN ON NEXT PAGE] 

 IN WITNESS WHEREOF, the parties have caused this Option Agreement to be executed, under seal, as of the
day and year indicated opposite their names below. 
  

					
		 	“PURCHASER”
		
		 	GWINNETT CLINIC, LTD., a Georgia corporation
			
	June 22, 2009	 	By:	 	  

	Date	 		 	J.J. Shah, President
		
		 	“SELLER”
		
		 	TOUCHMARK BANCSHARES, INC., a Georgia corporation
			
	June 22, 2009	 	By:	 	  

	Date	 		 	William R. Short, President

 EXHIBIT “A” 
 LEGAL DESCRIPTION 
 All that tract or parcel of land containing 1.907
acres lying and being in the City of Alpharetta in Land Lot 44 of the 1st District,
1st Section of Fulton County, Georgia, and being more particularly described as
follows: 
 BEGINNING at a  1/2 inch rebar pin found at the northwesterly end of a miter of the right of way intersection of the southerly right of way of Old Milton Parkway (aka Georgia State Route 120), a right of way of varying widths, with the
westerly right of way of Brookside Parkway, a right of way of varying widths; 
 Thence along said miter and right of way of
Brookside Parkway South 24 degrees 24 minutes 50 seconds East a distance of 21.69 feet to a  1/2 inch rebar pin found; 

 Thence continuing along said right of way South 24 degrees 28 minutes 10 seconds West a distance of 84.34 feet to a  1/2 inch rebar pin found; 
 Thence continuing along said right of way along a curve to the right having a radius of 744.16 feet an arc distance of 144.22 feet (said arc being subtended by a chord bearing South 30 degrees 01 minutes 00 seconds
West a distance of 143.99 feet) to a  1/2 inch rebar pin found; 
 Thence continuing along said right of way South 35 degrees 34 minutes 07 seconds West a distance of 96.60 feet to a  1
/2 inch rebar pin set; 
 Thence leaving
said right of way North 65 degrees 29 minutes 36 seconds West a distance of 66.80 feet to a  1/2 inch rebar pin set;

 Thence North 24 degrees 30 minutes 24 seconds East a distance of 90.00 feet to a nail set; 
 Thence North 65 degrees 29 minutes 36 seconds West a distance of 213.50 feet to a nail set; 
 Thence North 24 degrees 30 minutes 24 seconds East a distance of 246.56 feet to a  1/2 inch rebar pin set on aforesaid southerly right of way of Old Milton Parkway; 
 Thence along said right of way South 65 degrees 31 minutes 30 seconds East a distance of 296.25 feet to a  1/2 inch rebar pin found and the POINT OF BEGINNING. 
 Said property being shown on that certain ALTA/ACSM Land Title
Survey for Touchmark Bancshares, Inc. and Chicago Title Insurance Company prepared by McKim & Creed, containing the seal of George H. Pinion, GRLS No. 1606 dated June 10, 2009.Employment Agreement

 Exhibit 10.130 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made and entered into
effective as of June 23, 2009 by and between Charles & Colvard, Ltd., a North Carolina company with its principal office at 300 Perimeter Park Drive, Suite A, Morrisville, North Carolina, 27560 (the “Company”), and Timothy L.
Krist, an individual currently residing at 820 Magalloway Drive, Cary, North Carolina, 27519 (“Employee”). 
 Statement of
Purpose 
 The Company wishes to obtain the services of Employee on the terms and conditions and with the benefits set forth in this
Agreement. Employee desires to be employed by the Company on such terms and conditions and to receive such additional consideration as set out herein. 
 As a result of his employment, Employee will be in a position of trust and confidence and will have access to, learn of and benefit from certain confidential and proprietary information, know-how, trade secrets and
customer relationships of the Company and the Company is entitled to be protected from the use of this information and relationships in competition with it. Accordingly, in consideration of the mutual covenants contained in this Agreement, the
additional consideration of $500 paid by the Company to the Employee, the Company’s covenants set forth in Sections 7(c) and 7(d) which are all in addition to anything to which the Employee is already entitled the Employee agrees to the
restrictive covenants contained herein. 
 Therefore, the Company and Employee agree as follows: 
 1. Employment. The Company hereby agrees to employ Employee, and Employee hereby accepts such employment, on the terms and conditions set forth in
this Agreement. 
 2. Term of Employment. The term of Employee’s employment under this Agreement shall commence as of the date of
this Agreement and shall continue for one year. Termination of employment shall be governed by Paragraph 7 of this Agreement, and unless terminated by either party as provided in Paragraph 7, this Agreement shall automatically, at the expiration of
each then existing term, renew for successive additional one year terms (such annual period being hereinafter referred to as the “Term”). 
 3. Position and Duties. Employee shall serve as Chief Financial Officer of the Company, which shall include positions of Principal Accounting Officer and Principal Financial Officer for SEC purposes. Employee will, under the
direction of the Chief Executive Officer of the Company, faithfully and to the best of his ability perform the duties as set as may be reasonably assigned by the CEO or the Board of Directors of the Company. Employee agrees to devote his entire
working time, energy and skills to the Company while so employed. 

 4. Compensation and Benefits. Employee shall receive compensation and benefits for the services
performed for the Company under this Agreement as follows: 
 (a) Base Salary. Employee shall receive an initial base
salary of $215,000, payable in regular and equal semi-monthly installments (“Base Salary”). 
 (b) Employee
Benefits. Employee shall receive such benefits as are made available to the other employees of the Company, including, but not limited to, life, medical and disability insurance, retirement benefits, and such vacation as is provided to the other
employees of the Company (the “Employee Benefits”). Employer reserves the right to reduce, eliminate or change such Employee Benefits, in its sole discretion, subject to any applicable legal and regulatory requirements. 
 (c) Incentive Compensation. Employee shall participate in such incentive equity, cash and other plans as may be approved by the
Board of Directors from time-to-time for members of management, which shall include an initial award of 60,000 shares of restricted stock under the Company’s 2008 Stock Incentive Plan, with all restrictions lapsing on June 15, 2010.

 5. Reimbursement of Expenses. The Company shall reimburse Employee for all reasonable out-of-pocket expenses incurred by Employee
specifically and directly related to the performance by Employee of the services under this Agreement. 
 6. Withholding. The Company
may withhold from any payments or benefits under this Agreement all federal, state or local taxes or other amounts as may be required pursuant to applicable law, government regulation or ruling. 
 7. Termination of Employment. 
 (a) Death of Employee. If Employee shall die during the Term, this Agreement and the employment relationship hereunder will automatically terminate on the date of death. 
 (b) Termination by the Company for Just Cause. The Company shall have the right to terminate Employee’s employment under this
Agreement at any time for Just Cause, which termination shall be effective immediately. Termination for “Just Cause” shall include, termination for Employee’s personal dishonesty, gross incompetence, willful misconduct, breach of a
fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule, regulation (other than traffic violations or similar offenses), written Company policy or final cease-and-desist order,
conviction of a felony or of a misdemeanor involving moral turpitude, unethical business practices in connection with the Company’s business, misappropriation of the Company’s assets (determined on a reasonable basis), disability or
material breach of any other provision of this Agreement or any other conduct by Employee of a similar nature. For purposes of this subsection, the term “disability” means the inability of Employee, due to the condition of his physical,
mental or emotional health, to satisfactorily perform the duties of his employment hereunder for a continuous three month period; provided further that if the Company furnishes long term disability insurance for Employee, the term
“disability” shall mean that continuous period sufficient to allow for the long term disability payments to commence pursuant to the Company’s long term disability 

  

 2 

 
insurance policy. In the event Employee’s employment under this Agreement is terminated for Just Cause, Employee shall have no right to receive
compensation or other benefits under this Agreement for any period after such termination. 
 (c) Termination by the
Company Without Cause. The Company may terminate Employee’s employment other than for “Just Cause,” as described in Subsection (b) above, at any time upon written notice to Employee, which termination shall be effective
immediately. For the avoidance of doubt, a notice by the Company that the Agreement is not automatically renewing as provided in Section 2 hereof shall constitute a termination by the Company without cause under this Subsection (c). In the
event the Company terminates Employee pursuant to this Subsection (c), Employee will continue to receive his Base Salary at time of termination for a one (1) year period from such termination (the “Termination Compensation”), so long
as Employee complies with Section 8, 9 and 10 of the Agreement. Such amounts shall be payable at the times such amounts would have been paid in accordance with Section 4. In addition, the Company shall pay Employee’s insurance plan
premiums under the Consolidated Omnibus Budget Reconciliation Act to continue his and his family’s health insurance coverage for all periods that Employee receives Termination Compensation. Notwithstanding anything in this Agreement to the
contrary, if Employee breaches Sections 8, 9 or 10 of this Agreement, Employee will not be entitled to receive any further compensation or benefits pursuant to this Section 7(c). 
 (d) Change of Control Situations. In the event of a Change of Control of the Company at any time after the date hereof, Employee
may voluntarily terminate employment with Company up until one (1) year after the Change of Control for “Good Reason” (as defined below) and, subject to Section 7(f), (y) be entitled to receive in a lump sum (i) any
compensation due but not yet paid through the date of termination and (ii) in lieu of any further salary payments from the date of termination to the end of the then existing term, an amount equal to the Termination Compensation within two
(2) months of the consummation of the Change of Control, and (z) the Company shall pay Employee’s insurance plan premiums under the Consolidated Omnibus Budget Reconciliation Act to continue his and his family’s health insurance
coverage for a period of one year following termination of employment by Employee, on the same terms as were in effect either (A) at the date of such termination, or (B) if such plans and programs in effect prior to the Change of Control
of Company are, considered together as a whole, materially more generous to the officers of Company, then at the date of the Change of Control. Any equity based incentive compensation (including but not limited to stock options, restricted stock,
SARs, etc.) shall fully vest and be immediately exercisable in full upon a Change of Control, not withstanding any provision in any applicable plan. Any such benefits shall be paid by the Company to the same extent as they were so paid prior to the
termination or the Change of Control of Company. 
  

 3 

 “Good Reason” shall mean the occurrence of any of the following events without
Employee’s express written consent: 
 (i) the assignment to Employee of duties materially inconsistent with the position
and status of Employee with the Company immediately prior to the Change of Control; 
 (ii) a material reduction by the
Company in Employee’s pay grade or base salary as then in effect, or the exclusion of Employee from participation in Company’s benefit plans in which he previously participated as in effect at the date hereof or as the same may be
increased from time to time during the Term; 
 (iii) an involuntary relocation of Employee more than 50 miles from the
location where Employee worked immediately prior to the Change of Control or the breach by the Company of any material provision of this Agreement; or 
 (iv) any purported termination of the employment of Employee by Company which is not effected in accordance with this Agreement. 
 A “Change of Control” shall be deemed to have occurred if (i) any person or group of persons (as defined in
Section 13(d) and 14(d) of the Securities Exchange Act of 1934) together with its affiliates, excluding employee benefit plans of Company, becomes, directly or indirectly, the “beneficial owner” (as defined in Rule 13d-3 promulgated
under the Securities Exchange Act of 1934) of securities of Company representing 51% or more of the combined voting power of Company’s then outstanding securities; or (ii) during the then existing term of the Agreement, as a result of a
tender offer or exchange offer for the purchase of securities of Company (other than such an offer by the Company for its own securities), or as a result of a proxy contest, merger, consolidation or sale of assets, or as a result of any combination
of the foregoing, individuals who at the beginning of any year period during such term constitute the Company’s Board of Directors, plus new directors whose election by Company’s shareholders is approved by a vote of at least two-thirds of
the outstanding voting shares of the Company, cease for any reason during such year period to constitute at least two-thirds of the members of such Board of Directors; or (iii) the shareholders of the Company approve a merger or consolidation
of the Company with any other corporation or entity regardless of which entity is the survivor, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or being converted into voting securities of the surviving entity) at least 60% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after
such merger or consolidation; or (iv) any event which the Company’s Board of Directors determines should constitute a Change of Control. Notwithstanding anything in this Agreement to the contrary, in no event shall any of the following
occurrences constitute a “Change of Control”: (i) the Company’s making any assignment for the benefit of its creditors or consenting to the appointment of a receiver or commencing any proceeding in bankruptcy or for dissolution,
liquidation, winding-up, composition or other relief under state or federal bankruptcy laws or (ii) any proceeding in bankruptcy or for dissolution, liquidation, winding-up, composition or other relief under state or federal bankruptcy laws
being commenced against the Company, or a receiver or trustee being appointed for the Company or a substantial part of its property. 
  

 4 

 (e) Employee’s Right to Payments. In receiving any payments pursuant to this
Section 7, Employee shall not be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Employee hereunder, and such amounts shall not be reduced or terminated whether or not Employee obtains
other employment. 
 (f) Reduction in Agreement Payments. Notwithstanding anything in this Agreement to the contrary,
if any of the payments provided for under this Agreement (the “Agreement Payments”), together with any other payments that Employee has the right to receive (such other payments together with the Agreement Payments are referred to as the
“Total Payments”), would constitute a “parachute payment” as defined in Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the “Code”) (a “Parachute Payment”), the Agreement Payments
shall be reduced by the smallest amount necessary so that no portion of such Total Payments would be Parachute Payments. In the event the Company shall make an Agreement Payment to Employee that would constitute a Parachute Payment, Employee shall
return such payment to the Company (together with interest at the rate set forth in Section 1274(b)(2)(B) of the Code). For purposes of determining whether and the extent to which the Total Payments constitute Parachute Payments, no portion of
the Total Payments the receipt of which Employee has effectively waived in writing shall be taken into account. 
 8. Covenant Not to
Compete. Employee agrees that during his employment with the Company and for a period of one (1) year following the termination of his employment with the Company, for whatever reason: 
 (a) Employee shall not, directly or indirectly, own any interest in, manage, operate, control, be employed by, render advisory services
to, or participate in the management or control of any business that operates in the Business. For purposes of this Agreement, the Employee and the Company specifically agree that the “Business” shall mean the business of:
(i) marketing or distributing jewelry, diamonds or gemstones or (ii) fabricating (wafering, preforming and faceting), marketing and distributing moissanite gemstones or other diamond simulants to the gem and jewelry industry, unless
Employee’s duties, responsibilities and activities for and on behalf of such business are not related in any way to products which are in competition with the Company’s products. For purposes of this section, “competition with the
Company” shall mean competition for customers in the United States and in any country in which the Company is selling the Company’s products at the time of termination. Employee’s ownership of less than one percent of the issued and
outstanding stock of a corporation engaged in the Business shall not by itself be deemed to be a violation of this Agreement. Employee recognizes that the possible restriction on his
activities which may occur as a result of his performance of his obligations under Paragraph 8(a) are substantial,
but that such restriction is required for the reasonable protection of the Company. 
 (b) Employee shall not, directly or indirectly, influence or attempt to influence any customer of the Company to discontinue its purchase
of any product of the Company which is manufactured or sold by the Company at the time of termination of Employee’s employment or to divert such purchases to any other person, firm or employer. 
  

 5 

 (c) Employee shall not, directly or indirectly, interfere with, disrupt or attempt to
disrupt the relationship, contractual or otherwise, between the Company and any of its suppliers. 
 (d) Employee shall not,
directly or indirectly, solicit any employee of the Company to work for any other person, firm or employer. 
 9. Confidentiality. In
the course of his employment with the Company, Employee will have access to confidential information, records, data, customer lists, lists of product sources, specifications, trade secrets and other information which is not generally available to
the public and which the Company and Employee hereby agree is proprietary information of the Company (“Confidential Information”). During and after his employment by the Company, Employee shall not, directly or indirectly, disclose the
Confidential Information to any person or use any Confidential Information, except as is required in the course of his employment under this Agreement. All Confidential Information as well as records, files, memoranda, reports, plans, drawings,
documents, models, equipment and the like, including copies thereof, relating to the Company’s business, which Employee shall prepare or use or come into contact with during the course of his employment, shall be and remain the Company’s
sole property, and upon termination of Employee’s employment with the Company, Employee shall return all such materials to the Company. 
 10. Proprietary Information. Employee shall assign to the Company, its successors or assigns, all of Employee’s rights to copyrightable works and inventions which, during the period of Employee’s employment by the Company
or its successors in business, Employee makes or conceives, either solely or jointly with others, relating to any subject matter with which Employee’s work for the Company is or may be concerned (“Proprietary Information”). Employee
shall promptly disclose in writing to the Company such copyrightable works and inventions and, without charge to the Company, to execute, acknowledge and deliver all such further papers, including applications for copyrights and patents for such
copyrightable works and inventions, if any, in all countries and to vest title thereto in the Company, its successors, assigns or nominees. Upon termination of Employee’s employment hereunder, Employee shall return to the Company or its
successors or assigns, as the case may be, any Proprietary Information. The obligation of Employee to assign the rights to such copyrightable works and inventions shall survive the discontinuance or termination of this Agreement for any reason.

 11. Entire Agreement. This Agreement contains the entire agreement of the parties with respect to Employee’s employment by the
Company and supersedes any prior agreements between them, whether written or oral. 
 12. Waiver. The failure of either party to
insist in any one or more instance, upon performance of the terms and conditions of this Agreement, shall not be construed as a waiver or a relinquishment of any right granted hereunder or of the future performance of any such term or condition.

 13. Notices. Any notice to be given under this Agreement shall be deemed sufficient if addressed in writing and delivered
personally, by telefax with receipt acknowledged, or by registered or certified U.S. mail to the address first above appearing, or to such other address as a party may designate by notice from time to time. 
  

 6 

 14. Severability. In the event that any provision of any paragraph of this Agreement shall be
deemed to be invalid or unenforceable for any reason whatsoever, it is agreed such invalidity or unenforceability shall not affect any other provision of such paragraph or of this Agreement, and the remaining terms, covenants, restrictions or
provisions in such paragraph and in this Agreement shall remain in full force and effect and any court of competent jurisdiction may so modify the objectionable provision as to make it valid, reasonable and enforceable. 
 15. Amendment. This Agreement may be amended only by an agreement in writing signed by each of the parties hereto. 
 16. Arbitration. Any controversy or claim arising out of or relating to this Agreement, or breach thereof, shall be settled by arbitration in
Raleigh, North Carolina in accordance with the expedited procedures of the Rules of the American Arbitration Association, and judgment upon the award may be rendered by the arbitrator and may be entered in any court having jurisdiction thereof.

 17. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of North Carolina. Each
of the parties hereto irrevocably submits to the exclusive jurisdiction of the courts located in North Carolina for the purposes of any suit, action or other proceeding contemplated hereby or any transaction contemplated hereby. 
 18. Benefit. This Agreement shall be binding upon and inure to the benefit of and shall be enforceable by and against the Company, its successors
and assigns, and Employee, his heirs, beneficiaries and legal representatives. It is agreed that the rights and obligations of Employee may not be delegated or assigned except as may be specifically agreed to by the parties hereto. 
 19. Compliance with Section 409A. The parties hereto intend that this Agreement comply with Section 409A of the Internal Revenue Code of
1986, as amended (including any applicable regulations, proposed regulations, guidance or other interpretive authority thereunder (for purposes of this section, collectively, “Section 409A”)), to the extent applicable. The parties hereby
agree that this Agreement shall be construed in a manner to comply with Section 409A and that should any provision be found not in compliance with Section 409A, the parties are hereby contractually obligated to execute any and all
amendments to this Agreement deemed necessary and recommended by legal counsel for the Company to achieve compliance with Section 409A. By execution and delivery of this Agreement, the Company and Employee each irrevocably waive any objections
it or he may have to the amendments required or necessitated, in the reasonable opinion of the Company, by Section 409A. 
 <signature page follows> 
  

 7 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written. 
  

			
	CHARLES & COLVARD, LTD.
		
	By:	 	 /s/    Richard A. Bird

		 	Richard A. Bird, Chief Executive Officer
	
	EMPLOYEE
	
	 /s/    Timothy L. Krist

	 Timothy L. Krist

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]