Document:

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                                                                    Exhibit 10.6

Confidential Treatment has been requested with respect to portions of the
agreement indicated with an asterisk [*]. A complete copy of this agreement,
including the redacted terms, has been separately filed with the Securities and
Exchange Commission.

                    SECOND AMENDMENT TO E-COMMERCE AGREEMENT

         This Second Amendment to the E-Commerce Agreement (the "Agreement"),
dated as of August 10, 2001, by and between GSI Commerce, Inc. ("GSI"),
Bluelight.com, LLC (the "Company") and Kmart Corporation ("Kmart") is made as of
August 9, 2002. All capitalized terms not specifically defined herein shall have
the meaning ascribed to them pursuant to the Agreement.

                                    RECITALS

     WHEREAS, GSI, the Company and Kmart entered into the Agreement pursuant to
which GSI operates the Company Site; and

     WHEREAS, on January 22, 2002, Kmart and the Company and certain of their
affiliates filed for bankruptcy protection in the United States Bankruptcy Court
for the Northern District of Illinois Case No. 02-02474 (jointly administered).

     WHEREAS, GSI, the Company and Kmart desire to enter into this Second
Amendment to the Agreement in order to clarify certain rights and obligations
among them; and

     NOW, THEREFORE, intending to be legally bound, and in consideration of the
mutual obligations contained herein and in the Agreement, the Parties agree as
follows:

     1. Section 7.3 (ii) is deleted from the Agreement and replaced with the
following revised Section 7.3 (ii):

        "(ii) [*]."

     2. For the payment due on [*], Kmart and the Company agree that GSI will
offset the postpetition amount of [*] due from GSI to Kmart and will apply it
against postpetition operational fee payable on [*], and Kmart will remit the
remaining balance due to GSI. Upon reconciliation of the offset amount owed to
Kmart from GSI, if any additional amount is owed to GSI or Kmart such sum shall
be immediately paid after the reconciliation by the party owing such payment.

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     3. This Second Amendment is not intended, nor shall be construed, as an
assumption of the Agreement, it being the intention of the parties that this
Second Amendment merely modify the Agreement and not create a new postpetition
contract. Kmart and the Company reserve all rights to assume or reject the
Agreement, as modified by this Second Amendment. GSI reserves all rights under
the Agreement as modified by this Second Amendment and applicable law.

     IN WITNESS WHEREOF, intending to be legally bound, each of the parties have
caused their duly authorized representatives to enter into this Second Agreement
on the date first written above.

GSI Commerce, Inc.                            Bluelight.com, LLC

By:     /s/ Michael G. Rubin                  By:     /s/ Richard Blunck
    -----------------------------------              ---------------------------

Name:     Michael G. Rubin                    Name:   Richard Blunck

Title:   President, Chairman and              Title:  Chief Executive Officer
         Chief Executive Officer

Kmart Corporation

By:      /s/ Al Koch
    -----------------------------------

Name:    Al Koch

Title:   Chief Financial OfficerAGREEMENT

  
 Exhibit 10.50 
  
 August 5, 2002 
  
 
	 Robert S. Thomas
 	  	 Charles M. Swoboda
 
	 President & CEO
 	  	 President & CEO
 
	 Charles & Colvard, Ltd.
 	  	 Cree, Inc.
 
	 3800 Gateway Blvd. Suite 310
 	  	 4600 Silicon Drive
 
	 Morrisville, NC 27560
 	  	 Durham, NC 27703
 

 
  
 This letter, when signed on behalf of Charles & Colvard, Ltd. (formerly C3 Inc.) and
Cree, Inc., will serve as an agreement between Charles & Colvard and Cree amending the parties’ March 8, 2002 letter agreement to provide the following terms, effective on and after July 1, 2002. As defined in the March 8, 2002 letter
agreement, the development agreement will expire upon Charles & Colvard’s purchasing the quantity of SiC production crystals specified in that agreement. 
  

	 	1.
	 
	Cree will supply SiC production crystals to Charles & Colvard, and Charles & Colvard will purchase SiC production crystals from Cree, according to the
terms stated in this agreement. 
 

  

	 	2.
	 
	Charles & Colvard will purchase “usable material” (determined in the manner described in Paragraph3) at a price of $XXXX and according to the
following quantities and schedule for the period of six months beginning July 1, 2002. Prices for purchases after calendar 2002 will be mutually agreed in writing from time to time. 
 

  
 
	 Delivery Period
 
	  	 Quantity (kg)
 

	 7/1/02–9/29/02
 	  	 XX
 
	 9/30/02–12/29/02
 	  	 XX
 

 
  
 Provided that Cree uses its best commercially reasonable efforts to
deliver the quantities of usable material required by this agreement, Cree will not be held in breach for delays in delivery. 
  

	 	3.
	 
	The quantity of “usable material” of crystals delivered to Charles & Colvard pursuant to this agreement will be determined according to the
following: 
 

  

	 	A.
	 
	Material will be graded according to specifications in Attachment A. 
 

  

	 	B.
	 
	Grams of usable material will be calculated on a crystal by crystal basis according to the following equation: (usable mm) as a percent of total length of the
crystal in mm multiplied by the actual weight of the crystal in grams. “Usable mm” means millimeters of usable material as defined in Attachment A. 
 

  

	 	C.
	 
	Crystals shipped to Charles & Colvard must contain at least XX grams of usable material for the 2” crystals or XX grams for 3” crystals. This
usable area must be contiguous. Crystal diameter to be shipped will be 2” or 3” as determined by Cree. 
 

  

	 	4.
	 
	Charles & Colvard agrees to purchase a minimum of XX of “usable material” (calculated in the manner described in Paragraph 3) each quarter during
calendar 2003. For each quarter in calendar 2003 and thereafter, Charles & Colvard will provide Cree its minimum volume requirements in the form of firm purchase orders at least 30 days in advance of the quarter. For each quarter during the
period beginning January 2003 and ending September 2007, in the event that (i) the minimum volume requirements of Charles & Colvard fall below XX per quarter and (ii) Cree has not utilized on a daily basis as described below, for production for
Charles & Colvard or for other 
 

 

 Cree production, at least XX crystal growers designated by Cree for the production of materials for Charles &
Colvard, then Charles & Colvard agrees to pay Cree an unused capacity charge for the under utilized portion such crystal growers, up to a maximum charge of $111,222 per quarter. The charge per grower will be calculated as the product of $XXXXXX
per day times the number of days during the quarter on which no production runs were started in the grower for production for Charles & Colvard or for other Cree production. Cree will invoice the unused capacity charge on a quarterly basis on or
after the last business day of each quarter; payment is due 30 days after the invoice date. As used in this agreement, “quarter” refers to fiscal quarters of Cree ending during the indicated period. 
  

	 	5.
	 
	Except as provided above, the supply and purchase of SiC material will be governed by the terms and conditions of the parties’ Supply Agreement, as
amended. 
 

  

	 	6.
	 
	The contents of this letter shall be considered “Confidential Information” of each party subject to the provisions of Section 5 of the Supply
Agreement, as amended. 
 

  
 
	 CHARLES & COLVARD, LTD.
 	 	  	 	 CREE, INC.
 
	 
	 By:
 	 	 /s/  Robert S. Thomas
 
	 	  	 	 By:
 	 	 /s/  Charles M. Swoboda
 

	  	 	 Robert S. Thomas
 President & CEO
 Charles & Colvard Ltd.
 	 	  	 	  	 	 Charles M. Swoboda
 President & CEO
 Cree, Inc.
 

 

 

  
 ATTACHMENT A 
  
 Specification of usable material as referenced in paragraph 2 above. 
  
 COLOR:  Usable material is calculated as “light gray” or “very light gray”. Specifically tone/color number 20 and 10 1 as used in the Charles & Colvard boule-grading screen will be considered acceptable tone and color material (note: grade 10 is preferred. Grade
20 material will be valued at $XXXX per-gram). 
  
 DEFECTS: 
 Material volume of acceptable color will be reduced by the percentage of the defects listed in the table below. Charles & Colvard shall set the acceptable standards for the quality of both the color and defects of all material
purchased pursuant to this letter agreement. For pricing purposes the grading of the material by both Cree and Charles & Colvard will adhere to those standards from which a baseline has been established during the grading of 206 crystals during
the first quarter of 2002. Should Charles & Colvard deem current standards or new defects unacceptable, then it can request changes to the standards or to the list of price reducing defects. At such time Cree has the option to make changes to
its materials pricing and/or volume commitments. 
  
 
	 ID
 	  	 D-Type
 	  	  
	 1
 	  	 XXXX
 	  	 Reduce
 
	 2
 	  	 XXXX
 	  	 Reduce
 
	 3
 	  	 XXXXX
 	  	 Reduce
 
	 4
 	  	 XXXXX
 	  	 No reduction
 
	 5
 	  	 XXXXX
 	  	 Reduce
 
	 6
 	  	 XXXXXX
 	  	 Reduce
 
	 7
 	  	 XXXXXXXXXXXXXXXXXXXXXXXXX
 	  	 No reduction
 
	 8
 	  	 XXXX
 	  	 Reduce
 
	 9
 	  	 XXXXXXXXX
 	  	 Reduce
 

 
 

	1
	 
	CH0257R 17.4mm tone/color 20 (lightest 20), new gray boules that are lighter than this will grade as 10, CE0269R 9.5mm tone/color 30 (lightest 30), new
gray boules that are lighter than this will grade as 20 
 

  

	2
	 
	Grading standards representing xxxxxxxxxx = CF0228R (30%med.), CF0229R (15%med.), CF0230R (50%med.), CE0270R (100%med.) & CE0264R (100%med.). 

  

	3
	 
	xxxxxxxxxxxxxxxxxxxxxxxxxx are represented by boule numbers CF0226R, CH0257R, CH0258R, CH0260R, CH0262R, CJ0192R, CS0165R, CS0166R, CS0168R, CS0169R.

 

  

	4
	 
	Crystals CC0213R, CH0165R and CH0215R represent xxxxxxxxxxx grading.

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