Letter Agreement Regarding 4th Quarter 2008 SiC Material Purchase Commitment between Cree, Inc. and Charles & Colvard, Ltd.
This agreement between Cree, Inc. and Charles & Colvard, Ltd. confirms that Charles & Colvard will not be required to purchase silicon carbide (SiC) material from Cree during the fourth quarter of 2008, as previously committed. However, any unpurchased amount from this period will be added to Charles & Colvard's purchase commitment for the following year, unless both parties agree otherwise in writing. The agreement is acknowledged and signed by representatives of both companies.
Exhibit 10.123
September 18, 2008
Cengiz Balkas
Vice President
Cree, Inc.
4600 Silicon Drive
Durham, NC
27703
Dear Cengiz,
As previously communicated to you in August, we believe that we have sufficient inventory to meet expected demand in the 4th quarter of 2008, and we are not planning to purchase any SiC material during such quarter. Accordingly, we would like to confirm that you are in agreement that Charles & Colvard will not be required to purchase our 4th quarter 2008 commitment of material as per the letter agreement dated November 12, 2007 during such quarter. However, to the extent that such amount is not purchased in the 4th quarter, it will be added to our purchase commitment for the following calendar year unless otherwise agreed in writing by Cree.
Please acknowledge your agreement with the foregoing by signing below and returning to me.
Sincerely
/s/ Steven L. Abate
Steven L. Abate
Vice President of Manufacturing
Charles & Colvard, LTD.
919 ###-###-####
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Acknowledgement:
Cree, Inc.
/s/ Cengiz Balkas 9-18-08
Cengiz Balkas Date
Vice President
