Sec Form 3 Filing - Boss Neil @ CHARLES & COLVARD LTD - 2008-09-30

FORM 3 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person Boss Neil 2. Issuer Name and Ticker or Trading Symbol CHARLES & COLVARD LTD [ CTHR] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) Principal Accting/Finance Offc (Last) (First) (Middle) C/O CHARLES AND COLVARD LTD., 300 PERIMETER PARK DRIVE, STE A 3. Date of Earliest Transaction (MM/DD/YY) 09/30/2008 (Street) MORRISVILLE, NC27560 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 2,984 D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Stock Options $ 0.785 02/24/2004 02/23/2011 common stock 3,375 D Stock Options $ 0.99 05/14/2004 05/13/2011 common stock 393 D Stock Options $ 0.792 07/18/2004 07/17/2011 common stock 393 D Stock Options $ 0.823 10/18/2004 10/17/2011 common stock 393 D Stock Options $ 1.646 02/23/2005 02/22/2012 common stock 1,050 D Stock Options $ 4.229 04/22/2005 04/22/2012 common stock 656 D Stock Options $ 3.162 07/17/2005 07/16/2012 common stock 656 D Stock Options $ 3.04 10/17/2005 10/17/2012 common stock 393 D Stock Options $ 3.398 12/21/2005 02/12/2013 common stock 1,312 D Stock Options $ 3.695 12/21/2005 04/15/2013 common stock 9,843 D Stock Options $ 3.901 12/21/2005 04/26/2014 common stock 656 D Stock Options $ 7.238 02/17/2005 02/16/2015 common stock 6,562 D Stock Options $ 11.215 12/21/2005 04/17/2015 common stock 131 D Stock Options $ 22.48 12/21/2005 07/18/2015 common stock 125 D Stock Options $ 16.424 12/21/2005 10/18/2015 common stock 125 D Stock Options $ 12.34 02/14/2009( 1 ) 02/13/2016 common stock 100 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Boss Neil C/O CHARLES AND COLVARD LTD. 300 PERIMETER PARK DRIVE, STE A MORRISVILLE, NC27560 Principal Accting/Finance Offc Signatures /s/ Neil Boss 10/09/2008 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Options granted become exercisable as follows: 33 on 2/14/07, 33 on 2/14/08, and 34 on 2/14/09.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

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