NC | 561928817 | |
(State or other jurisdiction of | (IRS Employer | |
incorporation) | Identification No.) |
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
The Amendment provided, among other things, that Reeves Park could purchase new asset orders of moissanite from the Company on a prepaid basis (if all other terms of the Amendment were met) and that payment for consignment orders must have been received equal to the value of any additional goods for consignment. The Amendment also provided t hat if Reeves Park defaulted on the Amendment and did not cure such default within 15 days after written notice thereof, Reeves Park authorized the Company to directly contact its retail customers to establish a method of doing business with the Company, including without Reeves Park, for periods after the default, and released the Company from any claim or liability arising from such contacts. Reeves Park also agreed to provide retail forecasting and reporting on a monthly basis, 15 days in arrears, to the Company for all major programs for which Reeves Park sold moissanite jewelry.
The Amendment also provided Reeves Park with the required notice of "good cause" to terminate the Manufacturing Agreement between Reeves Park and the Company dated March 14, 2008 and filed as Exhibit 10.111 to our Current Report on Form 8-K filed with the Commission on March 20, 2008 (the "Agreement"), due to Reeves Park's repeated failure to make timely payments for moissanite shipped to Reeves Park. Reeves Park has until November 22, 2008 to bring such accounts within terms to be in compliance with the Agreement.
CHARLES & COLVARD LTD | ||||||||
Date: November 20, 2008 | By: | /s/ Dennis M. Reed | ||||||
Dennis M. Reed | ||||||||
President & Chief Marketing Officer | ||||||||