Document:

Exhibit

Exhibit 10.9

Transphorm, Inc.
[Address]
March 22, 2007
Primit Parikh
[Address]
Re:    Offer of Employment
Dear Primit:
This letter will confirm the terms of your employment with Transphorm, Inc., a Delaware corporation (the “Company”), effective on March 26, 2007, or such other date agreed upon in writing by you and the Company, as follows:
1.    Title and Responsibilities. You will serve in the position of Chief Operating Officer, reporting to the Chief Executive Officer. You will assume and discharge such responsibilities as are commensurate with such position and as the Chief Executive Officer or Board of Directors may from time to time direct. During the term of your employment, you shall devote your full time, skill and attention to your duties and responsibilities, shall perform them faithfully, diligently and competently, and shall use your best efforts to further the business of the Company and its affiliated entities. In addition, you shall comply with and be bound by the operating policies, procedures and practices of the Company in effect from time to time during your employment.
2.    Terms; At-Will Employment. Your employment shall commence on March 26, 2007, or such other date agreed upon in writing by you and the Company. You agree that your employment with the Company is for an unspecified duration that constitutes at-will employment, and that either you or the Company can terminate this relationship at any time.
3.    Compensation; Equity.
(a)    In consideration of your services you will be paid a base salary of $12,500 per month, less applicable withholding, payable monthly or bi-monthly in accordance with the Company’s standard payroll practices. Your base salary will be reviewed annually by the Board of Directors of the Company.
(b)    As one of two founders of the Company, you will be offered the opportunity to purchase 800,000 shares of common stock of the Company upon the commencement of your employment with the Company. In the event you cease to provide services to the Company as an employee, consultant, advisor, officer or director of the Company for any reason, the Company shall have the option, for a period of 90 days from such date of termination, to repurchase all unvested shares at the lesser of the then fair market value of such shares and the original per share purchase price. Your shares shall be released from the Company’s repurchase option as follows: 25% of the
total number of shares shall be released from the Company’s repurchase option on the one year anniversary of the commencement of your employment with the Company and 1/36th of the 

Primit Parikh
March 22, 2007
Page 2

remaining shares shall be released from the Company’s repurchase option each full month thereafter, provided that you continue to provide services to the Company on each such date. In addition, in the event that within twelve months following a “Change of Control” the Company terminates your status as a service provider to the Company without “Cause”, then the release of your shares from the Company’s repurchase option shall be accelerated such that 50% of the then unreleased shares shall be immediately and automatically released from the Company’s repurchase option. In the event that within twelve months following a “Change of Control” you terminate your status as a service provider to the Company for “Good Reason”, then the release of your shares from the Company’s repurchase option shall be accelerated such that 25% of the then unreleased shares shall be immediately and automatically released from the Company’s repurchase option.
A “Change of Control” means the sale, conveyance, license or other disposition of all or substantially all of the property (including intellectual property) or business of the Company, or a merger or consolidation of the Company with or into any other corporation or other business transaction or series of transactions as a result of which the Company’s stockholders immediately prior to the transaction hold less than a majority of the voting interests of the Company (or successor) after the transaction (taking account only of stock of the Company held by such stockholders prior to the transaction) or a transaction in which any shares of the Company’s Preferred Stock are converted into any other property or security, other than Common Stock, provided, however, that the following shall not be considered a Change of Control Transaction: (i) a consolidation with a wholly-owned subsidiary of the Company; (ii) a merger effected exclusively to change the domicile of the Company, or (iii) an equity financing consummated solely for capital-raising purposes in which the Company is the surviving corporation and which is approved by the Company’s Board of Directors (including the member of the Company’s Board of Directors appointed by the holders of the Company’s Series A Preferred Stock pursuant to Section 5(d) of Article V of the Company’s Certificate of Incorporation).
“Cause” shall mean (i) your failure to perform your duties or responsibilities within fifteen (15) days of written notice from the Company describing the failure; provided that with respect to any employee who is also a member of the Board of Directors of the surviving entity in such Change of Control, the action and notice shall be determined by a committee of such Board of Directors consisting of all Board members except for the member at issue; (ii) any act of dishonesty, fraud or misrepresentation by you related to the Company; (iii) your violation of any federal or state law or regulation applicable to the Company’s business; (iv) wrongful disclosure of any trade secrets or any confidential or proprietary information of the Company or any other party to whom you owe an obligation of nondisclosure as a result of your relationship with the Company; (v) any act by you that constitutes material misconduct and is injurious to the Company; or (vi) your commission of any felony or any other crime involving dishonesty or affecting the reputation of the Company.
“Good Reason” shall mean: if one or more of the following events shall occur (unless such event(s) applies generally to all senior management of the Company following a Change of Control): (i) the assignment to you of any duties or the reduction of your duties, either of which results in a significant diminution in your position or responsibilities with the Company in effect immediately prior to such assignment or reduction taken as a whole; provided, however, that (A) you understand and agree that a mere change in title will not be considered a significant diminution for purposes 

Primit Parikh
March 22, 2007
Page 3

of this subsection (i) and (B) you further understand and agree that in determining whether a diminution in your position or responsibilities with the Company is significant your responsibilities shall be measured with respect to the unit or equivalent structure that represents the Company’s business and not the business of the surviving entity taken as a whole; (ii) a material reduction by the Company in your base salary as in effect immediately prior to such reduction; or (iii) your relocation to a facility or a location more than 50 miles from your then present location, without your express written consent.
The final terms of your purchase of shares from the Company shall be set forth in a Restricted Stock Purchase Agreement to be entered into by and between you and the Company.
4.    Other Benefits. You will be entitled to receive the standard employee benefits made available by the Company to its employees and managers to the full extent of your eligibility therefor. You shall be entitled to three (3) weeks of paid vacation per year in accordance with the Company’s vacation policy. During your employment, you shall be permitted, to the extent eligible, to participate in any group medical, dental, life insurance and disability insurance plans, or similar benefit plan of the Company that is available to other comparable employees. Participation in any such plan shall be consistent with your rate of compensation to the extent that compensation is a determinative factor with respect to coverage under any such plan. In the event that the Company has not established group medical, dental, life insurance and disability insurance plans, or similar benefit plans at the time you commence employment with the Company, the Company will reimburse you for the premium costs actually incurred or paid by you, in compliance with COBRA, for maintaining your currently effective group medical, dental, life insurance and disability insurance plans, or similar benefit plans until the Company establishes such plans.
The Company shall reimburse you for all reasonable business expenses actually incurred or paid by you in the performance of your services on behalf of the Company, in accordance with the Company’s expense reimbursement policy as from time to time in effect.
5.    Confidential Information. You agree to execute and deliver to the Company a confidential information and invention assignment agreement in the standard form utilized by the Company.
6.    No Conflicting Employment. You agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company.
7.    General Provisions.
(a)    Your employment will be governed by the laws of the State of California.
(b)    This letter sets forth the entire agreement and understanding between the Company and you relating to your employment and supersedes all prior verbal discussions between us.

If the foregoing accurately sets forth our mutual understanding and agreement regarding the terms of your employment, please acknowledge the same by signing and returning the enclosed copy of this letter.
	
		
	Transphorm, Inc.

	 
	 

	By:
	/s/ Umesh Mishra

	 
	Umesh Mishra

	 
	Chief Executive Office

Acceptance:
I accept the terms of my employment with the Company as set forth herein.
	
		
	/s/ Primit Parikh

	Primit Parikh

	 
	 

	Dated:
	March 26, 2007Exhibit

Exhibit 10.10

	
			
	 
	

	Transphorm Inc.
	115 Castilian Drive, Goleta, CA 93117
	805-456-1300

October 14, 2015
Cameron McAulay
[Address]

Re: Transphorm, Inc. Employment Offer
Dear Cameron,
I am pleased to offer you a position with Transphorm, Inc. (the “Company”) as CFO commencing on or before November 2, 2015.  If you decide to join the Company, you will report to Mario Rivas, CEO, and you will receive a rate of $8,653.84 bi-weekly ($225,000.00 annual equivalent) less applicable withholding, which will be paid in accordance with the Company’s normal payroll procedures.  This is a full-time, exempt position.
As a full-time exempt Company employee, you will also be eligible to accrue 29 days of paid time off annually, subject to the Company’s PTO policy, and certain standard employee benefits, as such may be in effect from time to time and subject to the terms and conditions of the Company’s benefits plans.  You should note that the Company may modify salaries and benefits from time to time in its discretion as it deems necessary.
If you join the Company and subject to your continued employment on such date, it will be recommended at the first meeting of the Company’s Board of Directors following your start date that the Company grant you an option to purchase 750,000 shares of the Company’s Common Stock, pursuant to the Company’s 2015 Equity Incentive Plan (the “Plan”), at a price per share at least equal to the fair market value per share of the Common Stock on the date of grant, as determined by the Company’s Board of Directors.  Twenty-five percent (25%) of the shares subject to the option shall vest twelve (12) months after the date your vesting begins, subject to your continuing employment with the Company, no shares shall vest before such date.  The remaining shares shall vest monthly over the next thirty-six (36) months in equal monthly amounts subject to your continuing employment with the Company.  This option grant shall be subject to the terms and conditions of the Plan and related Stock Option Agreement, including vesting requirements.  No right to any stock is earned or accrued until such time that vesting occurs, nor does the grant confer any right to continue vesting or employment.
This job offer is contingent upon a clearance of a background investigation and reference check, in accordance with applicable law.  This investigation and reference check may include a consumer report, as defined by the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. 1681a, and/or an investigative consumer report, as defined by FCRA, 15 U.S.C. 1681a, and California Civil Code 1786.2(c). This investigation will not include information bearing on your credit worthiness. This job offer is contingent upon a clearance of such a background investigation and/or reference check and upon your written authorization to obtain a consumer report and/or investigative consumer report. Refer to the attached Background Check Disclosure and 

Transphorm, Inc.
Employment Offer Letter
Page 2

Authorization for important disclosures and a written authorization form. For purposes of federal immigration law, you will be required to provide to the Company documentary evidence of your identity and eligibility for employment in the United States.  
You should be aware that your employment with the Company is for no specified period and constitutes at-will employment.  As a result, you are free to resign at any time, for any reason or for no reason.  Similarly, the Company is free to conclude its employment relationship with you at any time, with or without cause, and with or without notice.  As a condition to accepting our employment offer, you shall disclose to the Company any and all agreements relating to your prior employment that may affect your eligibility to be employed by the Company or limit the manner in which you may be employed.  It is the Company’s understanding that any such agreements will not prevent you from performing the duties of your position and you represent that such is the case.  Moreover, you agree that, during the term of your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activity directly related to the business in which the Company is now involved or becomes involved during the term of your employment, nor will you engage in any other activities that conflict with your obligations to the Company.  Similarly, you agree not to bring any third party confidential information to the Company, including that of your former employer, and that in performing your duties for the Company you will not in any way utilize any such information in performing your duties for the Company.  
As a Company employee, you will be required to sign and comply with an At-Will Employment, Confidential Information, Invention Assignment and Arbitration Information Agreement (“Employee Confidentiality Agreement”) which requires, among other provisions, the assignment of patent rights to any invention made during your employment at the Company and non-disclosure of proprietary information.  Moreover, in the event of any dispute or claim relating to or arising out of our employment relationship, you and the Company agree under the Employee Confidentiality Agreement to an arbitration in which (i) you are waiving any and all rights to a jury trial but all court remedies will be available in arbitration, (ii) we agree that all disputes between you and the Company shall be fully and finally resolved by binding arbitration, (iii) all disputes shall be resolved by a neutral arbitrator who shall issue a written opinion, (iv) the arbitration shall provide for adequate discovery, and (v) the Company shall pay all the arbitration fees, except an amount equal to the filing fees you would have paid had you filed a complaint in a court of law.  A copy of the Employee Confidentiality Agreement is enclosed. As a Company employee, you will also be expected to abide by Company rules and standards.  You will be specifically required to sign an acknowledgment that you have read and that you understand the Company’s rules of conduct, which are included in the Company’s Employee Handbook.  
To accept the Company’s offer, please sign and date this letter in the space provided below. A duplicate original is enclosed for your records.  This letter, along with the Employee Confidentiality Agreement, set forth the terms of your employment with the Company and supersedes any prior representations or agreements including, but not limited to, any 

Transphorm, Inc.
Employment Offer Letter
Page 3

representations made during your recruitment, interviews or pre‐employment negotiations, whether written or oral.  The Plan and related stock option agreement will govern the terms of any stock option granted to you by the Board of Directors.
This letter, including, but not limited to, its at‐will employment provision, may not be modified or amended except by a written agreement signed by an officer of the Company and you.  This offer of employment will terminate if it is not accepted, signed and returned within five (5) days of the date of this letter.
We believe your background and skills will add significant value to the Transphorm team and look forward to working with you at Transphorm, Inc.
	
		
	Sincerely,

	 
	 

	Transphorm, Inc.

	 
	 

	By:
	/s/ Mario Rivas

	Name:
	Mario Rivas

	Its:
	CEO

This letter encompasses all aspects of the employment offer and supersedes and replaces any prior offers, understandings, representation, promises, or agreement by or on behalf of Transphorm, Inc. If this letter accurately summarizes our proposed employment relationship, please indicate your acceptance by signing below.
	
	
	ACCEPTED AND AGREED TO this

	 

	16 day of October, 2015

	 

	/s/ Cameron McAulay

	Cameron McAulay

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