Charles & Colvard, Ltd. (NASDAQ:CHTYF) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

Item 5.02

On November 15, 2016, the Board of Directors (the Board) of
Charles and Colvard, Ltd. (the Company) appointed Clint J. Pete,
the Companys current Corporate Controller, as the Interim Chief
Financial Officer until the hiring of a permanent chief financial
officer, effective as of December 2, 2016, the effective date of
the resignation of Kyle S. Macemore, the Companys current Chief
Financial Officer, which was previously disclosed. Mr. Pete will
retain his position as Corporate Controller of the Company, which
he has held since June 2016.

Clint J. Pete, age 54, has served as Corporate Controller of the
Company since June 2016. Mr. Pete mostly recently served as
Director of Business Planning for Oracle Corporation, a cloud
application company, from June 2013 to May 2016. Prior to his
employment with Oracle, Mr. Pete served as Business Unit
Controller, Global Signaling Solutions of Tekelec, a
telecommunications company, from May 2011 to May 2013. At
Tekelec, Mr. Pete also previously served as Global Revenue
Controller. Prior to his employment with Tekelec, Mr. Pete served
as Vice President of Finance and Controllers at Qualex Inc., a
Kodak company. Before joining Qualex Inc., Mr. Pete held various
management positions at Ernst Young, LLP, an international public
accounting firm. Mr. Pete holds a Bachelor of Business
Administration degree in Accounting and Finance from Texas Tech
University and is a Certified Public Accountant.

In connection with Mr. Petes appointment as Interim Chief
Financial Officer, the Compensation Committee of the Companys
Board approved a 15% increase in the base salary of Mr. Pete,
increasing his salary from $167,000 to $192,050, effective
immediately and continuing during the period Mr. Pete serves as
Interim Chief Financial Officer.

About Charles & Colvard, Ltd. (NASDAQ:CHTYF)