Document:

Exhibit 10.3

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This
Amended and Restated Employment Agreement (this “Agreement”) is entered into as of March 15,
2005 by and between SEMILEDS CORPORATION, a Delaware corporation (the “Company”), and TRUNG
TRI DOAN (“Executive”),
and shall become effective as set forth below.

 

RECITALS:

 

A.            Executive is currently being
employed by the Company as Chief Executive Officer (“CEO”), pursuant to an
employment agreement, dated January 10, 2005, between the Company and
Executive (the “Prior
Agreement”).

 

B.            As a condition to investing
in the Company and purchasing shares of the Company’s Series A Preferred
Stock, J.R. Simplot Company and its affiliates or assigns (“Simplot”) have
requested that Executive and the Company enter into this Agreement, which sets
forth new terms of employment of Executive by the Company, and a stock
restriction agreement, dated the date hereof (the “Stock Restriction Agreement”),
to impose vesting restrictions on shares of the Company’s common stock
currently held by Executive, effective upon the Series A Closing Date (as
defined below).

 

C.            The parties desire to amend
and restate the Prior Agreement in its entirety.

 

AGREEMENT:

 

In
consideration of the foregoing recitals and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree that the Prior Agreement is hereby amended and restated in
its entirety in this Agreement, and the parties further agree as follows:

 

1.             EMPLOYMENT:  TERM OF EMPLOYMENT

 

1.1           Executive hereby agrees to
be employed by the Company for a term commencing upon the date of this
Agreement and continuing, subject to the terms and conditions of this
Agreement, for a period of twenty four (24) months from such date (the “Employment Term”).  The Employment Term will be automatically
renewed for successive two (2) year terms unless either party delivers
written notice to the other at least ninety (90) days prior to the expiration
date of an intention to terminate this Agreement.

 

1.2           Executive shall initially
have the title of CEO and such other titles as may be designated from time to
time by the Board of Directors, and shall have the benefits which an employee
of the same title would have with the Company. 
In his capacity as CEO, Executive will do and perform all services,
acts, or things necessary or advisable as an executive of the Company in charge
of the daily operations of the Company, subject at all times to the policies
set by the Company’s Board of Directors. 
Executive hereby agrees to perform such duties and to satisfy such
responsibilities throughout the Employment Term.

 

 

1.3           This Agreement shall
supersede and substitute for the Prior Agreement and any other previous
employment agreement between Executive and the Company, and is entered into in
consideration of the cancellation of all previous agreements except the
Original Proprietary Information and Invention Agreement (as defined in
Section 3.2) and Executive hereby releases the Company from any claims
under any previous employment agreement. 
The obligations set forth in this Agreement shall be in addition to, and
not in limitation of, any other obligations Executive may have under the
Original Proprietary Information and Invention Agreement or the New Proprietary
Information and Invention Agreement (as defined in Section 3.2).

 

2.             CONSIDERATION

 

2.1           Company agrees to compensate
Executive at the rate of $125,000 per year, payable semi-monthly in accordance
with the Company’s regular payroll policies and procedures as in effect from
time to time.  Executive will receive
compensation increases as determined by the Company.

 

2.1           The Company issued Executive
18,000,000 shares of the Company’s Common Stock (the “Shares”) on January 10,
2005.  The Shares are subject to a stock
restriction agreement between Executive and the Company of even date herewith
(the “Stock Restriction
Agreement”).  Under the
Stock Restriction Agreement, 75% of the Shares (13,500,000 shares) (the “Restricted Shares”)
are subject to the Company’s repurchase option as set forth in the Stock
Restriction Agreement.

 

2.2           Executive shall be entitled
to vacation, sick leave, and other fringe benefits in accordance with the
Company’s policies as they exist from time to time.

 

2.3           In addition to all other
compensation provided hereunder, Executive shall be entitled to reimbursement
for accountable reasonable travel, general liability insurance, telephone,
facsimile transmission and office supplies expenses and such other expenses as
are agreed to in advance by the Company which are incurred by Executive in his
performance of his duties hereunder and which have been actually paid by
Executive.  All claims for expenses shall
be reasonable and documented in accordance with the Company’s standard
procedures with respect thereto.

 

3.             PERFORMANCE
OF DUTIES: PROPRIETARY INFORMATION AND INVENTION AGREEMENT

 

3.1           In consideration of the
payments to be made hereunder, Executive agrees to devote his full time and
efforts during normal working hours to the performance of his duties hereunder
and to serve the Company diligently and to the best of his abilities.

 

3.2           Executive and the Company
previously entered into a proprietary information and invention agreement dated
January 10, 2005 (the “Original Proprietary Information and Invention Agreement”).  As part of and in connection with the
execution of this Employment Agreement between Executive and the Company, the
parties have executed a replacement proprietary information and invention
agreement of even date herewith (the “New Proprietary Information and Invention Agreement”), a copy of which is attached hereto
as 

 

2

 

Exhibit A and
incorporated herein.  The New Proprietary
Information and Invention Agreement replaces and supplants the Original
Proprietary Information and Invention Agreement and sets forth the parties’
obligations on and after the effective date of this Agreement.  The parties shall continue to be bound under
the Original Proprietary Information and Invention Agreement with respect to
the subject matter thereof for the period before the New Proprietary
Information and Invention Agreement became effective.  As used herein unless the context requires
otherwise, the term “Proprietary Information and Invention Agreement” shall
include both the Original Proprietary Information and Invention Agreement and
the New Proprietary Information and Invention Agreement.

 

4.             TERMINATION

 

4.1           This Agreement will be
terminable by the Company, with or without Cause (as defined below) upon thirty
(30) day notice.  Executive may terminate
this Agreement upon a material breach of this Agreement which is not cured by
the Company within 30 days of notice of the breach.  Executive may also terminate this Agreement
at any time following the initial two year term for any reason or no reason
upon 30 days’ notice to the Company.

 

4.2           If the Termination is by the
Company without Cause or is due to Constructive Termination, Executive will
receive (a) an amount, as severance, equal to six (6) months of then
current salary, payable within thirty (30) days following Termination, and
(b) then current medical insurance and other benefits for the six (6) months
following Termination.

 

4.3           “Cause” means: (a) the
conviction of a felony or of any criminal offense involving moral turpitude, (b) the
repeated failure of Executive to satisfactorily perform duties reasonably
required of him by the Company, (c) Executive’s material breach of the
Proprietary Information and Invention Agreement, the Company’s written policies
established by the Board of Directors or of any term or provision of this
Agreement, or (d) misappropriation of property of the Company or unlawful
appropriation of a corporate opportunity of the Company or the Company
business.  The Company shall give
Executive written notice, stating the alleged Cause and that failure to remedy
the alleged Cause within thirty (30) days may result in termination for Cause;
provided further, however, that if the Board of Directors determines that continued
employment of the Executive during such notice period may be materially harmful
to the Company’s business, then Executive’s employment shall be suspended
immediately, subject to any right to cure as provided herein.

 

4.4           “Constructive Termination”
means (a) without Executive’s express written consent, a significant
reduction of Executive’s duties, position or responsibilities relative to
Executive’s duties, position or responsibilities in effect immediately prior to
such reduction, or the removal of Executive from such position, duties and
responsibilities, unless Executive is provided with comparable duties, position
and responsibilities; provided, however, that a reduction in duties, position
or responsibilities solely by virtue of the Company being acquired and made
part of a larger entity will not constitute an “Constructive Termination;” (b) without
Executive’s express written consent, a substantial reduction, without good
business reasons, of the facilities and perquisites (including office space and
location) available to Executive immediately prior to such reduction; (c) without
Executive’s express written consent, a reduction 

 

3

 

by the Company of Executive’s base salary as
in effect immediately prior to such reduction unless such reduction is part of
a Company-wide reduction for similarly situated persons; or (d) without
Executive’s express written consent, a material reduction by the Company in the
kind or level of employee benefits to which Executive is entitled immediately
prior to such reduction with the result that Executive’s overall benefits
package is significantly reduced unless such reductions are part of a
Company-wide reduction for similarly situated persons.

 

4.5           Executive shall be deemed to
be “permanently disabled” for purposes of this Section 4 if, during any
period of six consecutive months, he shall be unable, due to illness or injury,
to perform his duties hereunder for at least 50% of the number of full regular
business days during such six consecutive month period.  Executive shall be deemed to be permanently
disabled on the last day of such six-month period.

 

4.6           This Agreement shall
automatically terminate, without notice and without liability to the Company,
upon the death or permanent disability of Executive.

 

4.7           Other than as set forth
herein, in the event of a termination of this Agreement for any reason or for
no reason, Executive shall thereafter have no further right to receive
compensation or benefits under this Agreement, other than compensation or
benefits accrued and vested prior to the date of such termination.

 

5.             CONFIDENTIAL
INFORMATION AND INVENTIONS

 

5.1           Executive agrees to abide by
all of the terms and conditions of the New Proprietary Information and
Inventions Agreement, including but not limited to Section 3.1.

 

5.2           Without limiting the
generality of any of his obligations under the New Proprietary Information and
Inventions Agreement, Executive agrees that he shall hold in confidence and
shall not at any time during or after his relationship with the Company
(i) directly or indirectly reveal, report, publish, disclose, or transfer
the Confidential Information (as defined in the Proprietary Information and
Inventions Agreement) or any part to any person or entity, (ii) use any of
the Confidential Information of any party thereof for any purpose other than in
the course of his work for, and for the benefit of the Company, (iii) assist
any person or entity other than the Company to secure any benefit from the
Confidential Information or any part thereof or to solicit business from or
provide services or products of any type to any of the Company’s customers, or (iv) solicit
(on Executive’s behalf or on behalf of any third party) any employee of the
Company for the provision of any services or products which Executive is
prohibited from providing hereunder.

 

5.3           The obligations set forth in
the Section 5 shall survive any termination of the Agreement for any
reason whatsoever.

 

6.             EQUITABLE
REMEDIES

 

It
is anticipated by the parties that during the term hereof Executive will
continue, on behalf of the Company, to develop and/or provide employment
services with respect to, among other things, the research, development and/or
enhancement of products included in, derivative of or related to such
intellectual property assets of the Company. 
Because of the 

 

4

 

foregoing, and because of Executive’s unique
expertise and experience in the field of LEDs and semiconductors, the parties
acknowledge and agree that the services to be performed hereunder by Executive
are of a special, unique, unusual, extraordinary or intellectual character, and
which are of peculiar value the loss of which cannot be reasonably or
adequately compensated in damages. 
Accordingly, Executive acknowledges and agrees that the Company shall be
entitled to all equitable remedies including injunctive relief to enforce the
provisions of the Agreement.

 

7.             SURRENDER
OF BOOKS AND RECORDS

 

All
notes, data, reference materials, sketches, drawings, memoranda, documentation
and records in any way incorporating or reflecting any of the Confidential
Information and all proprietary rights therein, including copyrights, shall, as
between the Company and Executive, belong to the Company, and Executive agrees
to turn over all copies of such materials in Executive’s control to the Company
upon request or upon termination of Executive’s relationship with the
Company.  Executive agrees that on the
termination of his relationship with the Company in any manner, he will
participate in an exit interview conducted by a representative of the Company.

 

8.             SEVERABILITY

 

To
the extent that any provision of this Agreement shall be unlawful, invalid,
void or unenforceable for any reason, it shall be deemed severable from, and
shall in no way affect the validity or enforceability of, the remainder of such
provision (if any) or of this Agreement, which shall remain valid and
enforceable according to its terms.  In
furtherance of, and not in limitation of, the foregoing, should the duration or
geographical extent of, or business activities covered by, any provision of
this Agreement be in excess of that which is valid and enforceable under
applicable law, than such provision shall be deemed narrowed to the broadest
term, coverage or scope permitted by applicable law.

 

9.             MISCELLANEOUS

 

9.1           Assignment.  Executive’s rights, duties and
responsibilities under this Agreement may not be assigned, delegated, or
otherwise transferred by Executive in any manner without the prior express
written consent of the Company, which the Company may withhold in its
discretion.  This Agreement and all
obligations and benefits of the Company hereunder shall bind and inure to the
benefit of the Company, its respective affiliates, and its respective
successors and assigns.

 

9.2           Notices.  Any notice, request, demand, statement,
authorization, approval or consent required or permitted under this Agreement
shall be in writing and shall be made by, and deemed duly given upon, (a) deposit
in the mail, postage prepaid, registered or certified, return receipt
requested, (b) personal delivery, (c) delivery to an overnight
courier of recognized reputation, or (d) facsimile transmission (with
confirmation by mail), as follows, or to such other address and/or such
additional parties as any party may specify by notice given in accordance with
the Section 9.2:

 

5

 

	
  If
  to Company:

  	
  SemiLEDs
  Corporation

  
	
   

  	
  40737
  Encyclopedia Circle

  
	
   

  	
  Fremont,
  California 94538

  
	
   

  	
  Fax:
  (408) 716-2452

  
	
   

  	
   

  
	
  If
  to Executive:

  	
  Trung
  Tri Doan

  
	
   

  	
  101
  Lasuen Court

  
	
   

  	
  Los
  Gatos, California 95032-3900

  

 

All
such notices and communications hereunder shall be deemed given when received,
as evidenced by the acknowledgment of receipt issued with respect thereto by
the applicable postal authority or the signed acknowledgment of receipt of the
person to whom such notice or communication shall have been addressed.

 

9.3           Entire Agreement.  This Agreement, the schedules referred to
herein and the Proprietary Information and Inventions Agreement constitute the
entire contract between the parties with respect to the subject matter covered
by this Agreement, and supersede all previous discussions, negotiations, oral
or written, representations, statements, arrangements, agreements and
understandings, if any, by and among the parties with respect to the subject
matter covered by this Agreement other than those herein, and any such
discussions, negotiations, oral or written, representations, statements,
arrangements, agreements and understandings are hereby canceled and terminated
in all respects.  This Agreement may not
be amended, changed or modified except by a writing duly executed by the
parties hereto or their duly authorized representatives.  All amendments or modifications of this
Agreement shall be binding upon the parties despite any lack of consideration
so long as the same shall be in writing and executed by the parties hereto.  The parties have made no representations or
warranties not expressly set forth in this Agreement.

 

9.4           Remedies.  All rights and remedies of the parties are
separate and cumulative, and no one of them, whether exercised or not, shall be
deemed to be to the exclusion of or to limit or prejudice any other legal or
equitable rights or remedies which the parties may have.  The parties shall not be deemed to waive any
of their rights or remedies under this Agreement, unless such waiver is in
writing and signed by the party to be bound. 
No delay or omission on the part of any party in exercising any right or
remedy shall operate as a waiver of such right or remedy or any other right or
remedy.  A waiver on any one occasion
shall not be construed as a bar to or waiver of any right or remedy on any
future occasion.

 

9.5           Counterparts.  This Agreement may be executed in
counterparts, each of which shall constitute an original, but all of which
together shall constitute one and the same agreement.  A facsimile signature page shall be
deemed an original.

 

9.6           Choice of Law.  The rights and obligations of the parties
hereto shall be construed and enforced in accordance with and governed by the
laws of the state of California, excluding that body of law known as conflicts
of law.

 

9.7           Arbitration.  The parties agree to first negotiate in good
faith to resolve any disputes arising out of or relating to or affecting the
subject matter of this Agreement.  Any 

 

6

 

dispute arising out of or relating to or
affecting the subject matter of this Agreement not resolved by negotiation
shall be settled by binding arbitration in Santa Clara County, California
before the Judicial Arbitration and Mediation Services, Inc. (“JAMS”)
under the JAMS Rules of Practice and Procedure.  Arbitration may be initiated by either the
Company or Executive.  Simplot shall have
the right to initiate an arbitration proceeding under this Agreement on behalf
of the Company to determine the Breach (as defined in the Stock Restriction
Agreement).  The arbitrator shall be a
former judge of a court of California. 
Any judgment upon the award may be confirmed and entered in any court
having jurisdiction thereof.  The
arbitrator shall be required to, in all determinations, apply California law
without regard to its conflicts of law provisions.  Notwithstanding the foregoing, the arbitrator
shall be free to apply the substantive law of the state of incorporation of the
Company, where applicable.  The
arbitrator may order any provisional remedies, including, without limitation,
injunctive relief.  The Company shall pay
all arbitration fees, deposits and administrative costs, including expert
witness fees.  The arbitrator may award
the prevailing party reasonable attorneys’ fees and expenses.  The arbitrator’s award shall be in writing
and shall state the reasons for the award. 
The parties stipulate that a JAMS employee may be appointed as a judge
pro tempore of the Superior Court of Santa Clara County if required to carry
out the terms of this provision. 
Arbitration shall be the sole and exclusive means to resolve any
dispute.

 

9.8           Binding Effect.  This Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective successors,
permitted assigns and legal and personal representatives.

 

9.9           Legal Advice and
Construction of Agreement.  Both
the Company and Executive have received, or have had sufficient opportunity to
receive, independent legal advice with respect to the advisability of entering
into this Agreement, and neither has been entitled to rely upon or has in fact
relied upon the legal or other advice of the other party or such other party’s
legal counsel in entering into this Agreement. 
Each party has participated in the drafting and preparation of this
Agreement, and accordingly, in any construction or interpretation of this
Agreement, the same shall not be construed against any party by reason of the
source of drafting.

 

9.10         Effective Date.  This Agreement shall become effective as of
the closing of the Company’s Series A Preferred Stock financing in which
Simplot invests a minimum of $11,000,000 (including the conversion of
convertible notes) (the “Series A
Closing Date”).

 

[Signature Page Follows]

 

7

 

IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the
date first above written.

 

AUTHORIZED
SIGNATURES

 

For
the purpose of binding the parties to the above Agreement, the parties or their
duly authorized representatives have signed their names below as of the date
set forth above.

 

	
  COMPANY

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
  SEMILEDS CORPORATION

  	
   

  	
  TRUNG TRI DOAN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Anh Chuong Tran

  	
   

  	
  /s/
  Trung Tri Doan

  
	
   

  	
  Anh Chuong Tran, President

  	
   

  	
   

  

 

Signature
Page

 

 

Exhibit A

 

SemiLEDs Corporation

 

PROPRIETARY INFORMATION AND

INVENTIONS AGREEMENT FOR EMPLOYEES

 

SemiLEDs
Corporation and its affiliates (collectively, the “Company”) are engaged in a
continuous effort of technical innovation, product development and marketing,
and administration of the Company’s business. 
The success of these efforts depends on the Company’s ability to draw
upon the creative talents of its employees and to maintain the flow of
information among its employees.  For
this reason, the undersigned is requested to sign this Agreement under which:

 

A.                                   The employee
agrees to protect against unauthorized disclosure of confidential information
of the Company or other persons and to return to the Company such information
when employee’s employment with the Company terminates;

 

B.                                     The employee
agrees to disclose, and agrees that the Company will exclusively own, ideas,
works and inventions which relate to or in any way arise from the Company
business;

 

C.                                     The employee
agrees to avoid conflicting outside activities while employed by the Company;

 

D.                                    The employee
agrees that the employee will not solicit other Company employees for one year;
and

 

E.                                      The Company and
employee agree on the manner in which disputes will be resolved.

 

In
consideration for the compensation received by me for employment with the
Company, and effective as of the date that my employment commences, I
agree as follows:

 

1.             Term of
Employment.  I
understand that the Company may terminate my employment at any time, but my
obligations under this Agreement shall survive such termination.

 

2.             Protection of Confidential Information.

 

2.1          Confidentiality
Obligations.  During and
after the term of my employment, I will regard and preserve as
confidential, and will not divulge to any unauthorized persons, or use for any
unauthorized purposes, nor will I authorize or encourage any other person to
divulge or use for any unauthorized purposes, any information, matter or thing
of secret, confidential or private nature connected with the products, services,
research, development or business of the Company (“Confidential Information”)
without the written consent of an officer of the Company.  However, once particular Confidential
Information becomes public knowledge, except through my own fault, that
Information is no longer subject to these obligations.

 

A-1

 

2.2          Examples of
Confidential Information.  Confidential Information includes, by way of
example but not of limitation, such items as know-how, formulae, designs,
schematics, pricing or cost information, telephone lists, salary and
compensation information, inventions, research projects, plan for future
development and any other information of a similar nature.  Confidential Information also includes the
Work Product (as defined in Section 3.1 below), as well as confidential or
proprietary information of a third party to whom Company owes a duty of
confidentiality or non-use.

 

2.3          Unauthorized
Persons and Purposes.  As used in this
Section 2, an “unauthorized person” means any person who (i) does not
have a need to know the information to further a Company-authorized purpose, or
(ii) who has such a need but is not obligated to maintain such information
in confidence and to use such information only for a Company-authorized
purpose.  An “unauthorized purpose” means
a purpose that does not further the interests of the Company or that is not
otherwise approved in writing by an officer of the Company.

 

3.             Disclosure and Assignment to Company of Work Product.

 

3.1          Definition of Work Product.

 

“Work
Product” means any and all ideas, inventions, improvements, discoveries,
know-how, techniques and works of authorship (including but not limited to
logic design and documentation) and other information and materials relating to
light emitting diodes (“LED”) and LED-related products, and to the development,
design, manufacture, production, assembly, packaging, marketing, and
distribution thereof by the Company, whether or not patentable, copyrightable
or otherwise registrable under applicable statutes, that I may make, conceive,
reduce to practice, develop, learn or work on, either alone or jointly with
others, whether or not reduced to drawings, written description, documentation,
models or other tangible form during the period of my employment by the
Company.

 

“Work
Product” shall also include, but shall not be limited to, all inventions, trade
secrets and other information that is related to or useful in the business of
the Company or to the Company’s actual or anticipated research, design,
development, experimental production, financing, manufacturing, licensing,
distribution or marketing activity carried on by the Company, or that results
from any work performed by me for the Company.

 

However,
pursuant to California Labor Code § 2870, “Work Product” does not include any
invention that I developed entirely on my own time and for which no equipment,
supplies, facilities or trade secret information of the Company was used, and
which (i) is not related to or useful in the business of the Company or to
the Company’s actual or demonstrably anticipated research, design, development,
experimental production, financing, manufacturing, licensing, distribution or
marketing activity carried on by the Company, or (ii) does not result from
any work performed by me for the Company. 
These inventions are referred to as “Employee Inventions.”

 

3.2          Company
owns Work Product.  I
agree that the Company and its assigns will be the exclusive owner of the Work
Product, and all patents, trademarks, copyrights, moral rights 

 

A-2

 

and other statutory or common law protections
in any and all countries (“IP Rights”) for the Work Product.  Without further compensation or
consideration, and to the extent Company does not otherwise obtain exclusive
ownership of these IP Rights by operation of law, I agree to, and do
hereby, assign to the Company any and all IP Rights in the Work Product.

 

3.3          Maintenance
of Records.  I agree to
keep and maintain adequate and current written records of all Work Product made
by me (solely or jointly with others) during the term of my employment with the
Company.  The records will be in the form
of notes, sketches, drawings, computer files, engineering log books, inventor
notebooks, prototypes, samples, or any other format that may be specified by
the Company.  The records will be
available to and remain the sole property of the Company at all times.

 

3.4          Protection
of Rights in Work Product.  I will assist the Company in every proper way
(such as by signing documents and giving evidence and testimony), at the
Company’s expense, to perfect Company’s ownership of all IP Rights in the Work
Product, and otherwise to obtain for Company (or its nominees) full rights and
advantages of the Work Product, in any and all countries.

 

4.             No Conflicting Obligations.

 

4.1          No Conflict
of Interest.  During my employment with
the Company, I will inform the Company before accepting any employment
with another person or entity in any field related to the Company’s
business.  Company’s failure to object to
any particular outside activity does not in any way reduce my obligations under
this Agreement.

 

4.2          No Breach
of Other Obligations.  I represent that my
performance of all the terms of this Agreement and that my employment by the
Company does not and will not breach any agreement to keep in confidence
proprietary information acquired by me in confidence or in trust prior to my
employment by the Company.  In particular, I
will not disclose to Company, or induce Company to use, any confidential
information or material in violation of the rights of my former employer or any
third party.  I represent and warrant
that I have returned all property and confidential information belonging to all
prior employers.  I have not entered
into, and I agree I will not enter into, any agreement (either written or oral)
in conflict with this Agreement.

 

5.             Return of
Materials.  The Confidential
Information, the records described in Section 3.3 above and any and all
other files, data, documents, equipment, and other information and physical
property furnished to me by the Company, or produced by myself or others in
connection with my employment, shall be and remain the sole property of the
Company.  I will return promptly to the
Company all such property as and when requested by the Company.

 

6.             Notification
of New Employer.  If I leave
the employ of the Company, I consent to the notification of my new
employer of my rights and obligations under this Agreement.

 

7.             Dispute
Resolution Procedure.  I
agree that any dispute arising out of or related to the employment relationship
between me and the Company, including the termination of that relationship, and
any allegations of unfair or discriminatory treatment arising under state or
federal law or otherwise, shall be resolved in accordance with the dispute
resolution procedures 

 

A-3

 

as set forth an employment agreement, dated
the date hereof, between me and the Company (the “Employment Agreement”).

 

8.             Miscellaneous
Clauses.  This
Agreement, together with the Employment Agreement, constitutes the entire
agreement, and supersedes all previous or contemporaneous agreements or
representations, whether oral or written, express or implied, between the
Company and me with regard to its subject matter.  These Agreements cannot be modified or waived
unless in writing, signed by me and the President of the Company (or his or her
designee).  If any term or provision of
the Agreement is declared invalid, illegal or unenforceable, such term or
provision will be amended to achieve as nearly as possible the same effect of
protecting Confidential Information as the original term or provision, and all
remaining provisions will continue in full force and effect.  This Agreement is binding upon my heirs,
executors, administrators or other legal representatives and inures to the
benefit of successors and assigns of the Company.  This Agreement is governed by and construed
in accordance with the laws of the State of California, excluding that body of
law known as conflicts of law.

 

[Signature Page Follows]

 

A-4

 

I
certify and acknowledge that I have carefully read all of the provisions of
this Agreement and that I understand and will fully and faithfully comply with
such provisions.

 

Dated:  March 15, 2005

 

 

	
  TRUNG
  TRI DOAN

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Trung Tri Doan

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGED
  AND AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SEMILEDS CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Anh Chuong Tran

  	
   

  
	
   

  	
  Anh
  Chuong Tran, President

  	
   

  

 

Signature
PageExhibit 10.4

 

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT

 

This
Amended and Restated Employment Agreement (this “Agreement”) is entered into as of March 15,
2005 by and between SEMILEDS CORPORATION, a Delaware corporation (the “Company”), and ANH
CHUONG TRAN (“Executive”),
and shall become effective as set forth below.

 

RECITALS:

 

A.            Executive is
currently being employed by the Company as President (“President”), pursuant
to an employment agreement, dated January 10, 2005, between the Company
and Executive (the “Prior
Agreement”).

 

B.            As a condition
to investing in the Company and purchasing shares of the Company’s Series A
Preferred Stock, J.R. Simplot Company and its affiliates or assigns (“Simplot”) have
requested that Executive and the Company enter into this Agreement, which sets
forth new terms of employment of Executive by the Company, and a stock
restriction agreement, dated the date hereof (the “Stock  Restriction Agreement”),
to impose vesting restrictions on shares of the Company’s common stock currently
held by Executive, effective upon the Series A Closing Date (as defined
below).

 

C.            The parties
desire to amend and restate the Prior Agreement in its entirety.

 

AGREEMENT:

 

In
consideration of the foregoing recitals and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree
that the Prior Agreement is hereby amended and restated in its entirety in this
Agreement, and the parties further agree as follows:

 

1.             EMPLOYMENT:  TERM OF EMPLOYMENT

 

1.1           Executive hereby agrees to
be employed by the Company for a term commencing upon the date of this
Agreement and continuing, subject to the terms and conditions of this
Agreement, for a period of twenty four (24) months from such date (the “Employment Term”).  The Employment Term will be automatically
renewed for successive two (2) year terms unless either party delivers
written notice to the other at least ninety (90) days prior to the expiration
date of an intention to terminate this Agreement.

 

1.2           Executive shall initially
have the title of President and such other titles as may be designated from
time to time by the Board of Directors, and shall have the benefits which an
employee of the same title would have with the Company.  In his capacity as President, Executive will
do and perform all services, acts, or things necessary or advisable as an
executive of the Company in charge of the daily operations of the Company,
subject at all times to the policies set by the Company’s Board of Directors.  Executive hereby agrees to perform such duties
and to satisfy such responsibilities throughout the Employment Term.

 

 

1.3           This Agreement shall
supersede and substitute for the Prior Agreement and any other previous
employment agreement between Executive and the Company, and is entered into in
consideration of the cancellation of all previous agreements except the
Original Proprietary Information and Invention Agreement (as defined in Section 3.2)
and Executive hereby releases the Company from any claims under any previous
employment agreement.  The obligations
set forth in this Agreement shall be in addition to, and not in limitation of,
any other obligations Executive may have under the Original Proprietary Information
and Invention Agreement or the New Proprietary Information and Invention
Agreement (as defined in Section 3.2).

 

2.             CONSIDERATION

 

2.1           Company agrees to compensate
Executive at the rate of $125,000 per year, payable semi-monthly in accordance
with the Company’s regular payroll policies and procedures as in effect from
time to time.  Executive will receive
compensation increases as determined by the Company.

 

2.2           The Company issued Executive
18,000,000 shares of the Company’s Common Stock (the “Shares”)
on January 10, 2005.  The Shares are
subject to a stock restriction agreement between Executive and the Company of
even date herewith (the “Stock Restriction
Agreement”).  Under the
Stock Restriction Agreement, 75% of the Shares (13,500,000 shares) (the “Restricted Shares”) are subject to
the Company’s repurchase option as set forth in the Stock Restriction
Agreement.

 

2.3           Executive shall be entitled
to vacation, sick leave, and other fringe benefits in accordance with the
Company’s policies as they exist from time to time.

 

2.4           In addition to all other
compensation provided hereunder, Executive shall be entitled to reimbursement
for accountable reasonable travel, general liability insurance, telephone,
facsimile transmission and office supplies expenses and such other expenses as
are agreed to in advance by the Company which are incurred by Executive in his
performance of his duties hereunder and which have been actually paid by
Executive.  All claims for expenses shall
be reasonable and documented in accordance with the Company’s standard procedures
with respect thereto.

 

3.             PERFORMANCE
OF DUTIES:  PROPRIETARY INFORMATION AND
INVENTION AGREEMENT

 

3.1           In consideration of the
payments to be made hereunder, Executive agrees to devote his full time and
efforts during normal working hours to the performance of his duties hereunder
and to serve the Company diligently and to the best of his abilities.

 

3.2           Executive and the Company
previously entered into a proprietary information and invention agreement dated
January 10, 2005 (the “Original Proprietary Information
and Invention Agreement”). 
As part of and in connection with the execution of this Employment
Agreement between Executive and the Company, the parties have executed a
replacement proprietary information and invention agreement of even date herewith
(the “New 

 

2

 

Proprietary Information and
Invention Agreement”), a copy of which is attached hereto as Exhibit A
and incorporated herein.  The New
Proprietary Information and Invention Agreement replaces and supplants the
Original Proprietary Information and Invention Agreement and sets forth the
parties’ obligations on and after the effective date of this Agreement.  The parties shall continue to be bound under
the Original Proprietary Information and Invention Agreement with respect to
the subject matter thereof for the period before the New Proprietary
Information and Invention Agreement became effective.  As used herein unless the context requires
otherwise, the term “Proprietary Information and Invention Agreement” shall
include both the Original Proprietary Information and Invention Agreement and
the New Proprietary Information and Invention Agreement.

 

4.             TERMINATION

 

4.1           This Agreement will be
terminable by the Company, with or without Cause (as defined below) upon thirty
(30) day notice.  Executive may terminate
this Agreement upon a material breach of this Agreement which is not cured by
the Company within 30 days of notice of the breach.  Executive may also terminate this Agreement
at any time following the initial two year term for any reason or no reason
upon 30 days’ notice to the Company.

 

4.2           If the Termination is by the
Company without Cause or is due to Constructive Termination, Executive will
receive (a) an amount, as severance, equal to six (6) months of
then current salary, payable within thirty (30) days following Termination, and
(b) then current medical insurance and other benefits for the six (6) months
following Termination.

 

4.3           “Cause”
means: (a) the conviction of a felony or of any criminal offense involving
moral turpitude, (b) the repeated failure of Executive to satisfactorily
perform duties reasonably required of him by the Company, (c) Executive’s
material breach of the Proprietary Information and Invention Agreement, the Company’s
written policies established by the Board of Directors or of any term or
provision of this Agreement, or (d) misappropriation of property of the
Company or unlawful appropriation of a corporate opportunity of the Company or
the Company business.  The Company shall
give Executive written notice, stating the alleged Cause and that failure to
remedy the alleged Cause within thirty (30) days may result in termination for
Cause; provided further, however, that if the Board of Directors determines
that continued employment of the Executive during such notice period may be
materially harmful to the Company’s business, then Executive’s employment shall
be suspended immediately, subject to any right to cure as provided herein.

 

4.4           “Constructive
Termination” means (a) without Executive’s express written
consent, a significant reduction of Executive’s duties, position or
responsibilities relative to Executive’s duties, position or responsibilities
in effect immediately prior to such reduction, or the removal of Executive from
such position, duties and responsibilities, unless Executive is provided with
comparable duties, position and responsibilities; provided, however, that a
reduction in duties, position or responsibilities solely by virtue of the
Company being acquired and made part of a larger entity will not constitute an “Constructive
Termination;” (b) without Executive’s express written consent, a
substantial reduction, without good business reasons, of 

 

3

 

the facilities and perquisites (including
office space and location) available to Executive immediately prior to such
reduction; (c) without Executive’s express written consent, a reduction by
the Company of Executive’s base salary as in effect immediately prior to such
reduction unless such reduction is part of a Company-wide reduction for
similarly situated persons; or (d) without Executive’s express written
consent, a material reduction by the Company in the kind or level of employee
benefits to which Executive is entitled immediately prior to such reduction
with the result that Executive’s overall benefits package is significantly
reduced unless such reductions are part of a Company-wide reduction for
similarly situated persons.

 

4.5           Executive shall be deemed to
be “permanently disabled” for purposes of this Section 4 if, during any
period of six consecutive months, he shall be unable, due to illness or injury,
to perform his duties hereunder for at least 50% of the number of full regular
business days during such six consecutive month period.  Executive shall be deemed to be permanently
disabled on the last day of such six-month period.

 

4.6           This Agreement shall
automatically terminate, without notice and without liability to the Company,
upon the death or permanent disability of Executive.

 

4.7           Other than as set forth
herein, in the event of a termination of this Agreement for any reason or for
no reason, Executive shall thereafter have no further right to receive
compensation or benefits under this Agreement, other than compensation or
benefits accrued and vested prior to the date of such termination.

 

5.             CONFIDENTIAL
INFORMATION AND INVENTIONS

 

5.1           Executive agrees to abide by
all of the terms and conditions of the New Proprietary Information and Inventions
Agreement, including but not limited to Section 3.1.

 

5.2           Without limiting the
generality of any of his obligations under the New Proprietary Information and
Inventions Agreement, Executive agrees that he shall hold in confidence and
shall not at any time during or after his relationship with the Company (i) directly
or indirectly reveal, report, publish, disclose, or transfer the Confidential
Information (as defined in the Proprietary Information and Inventions
Agreement) or any part to any person or entity, (ii) use any of the
Confidential Information of any party thereof for any purpose other than in the
course of his work for, and for the benefit of the Company, (iii) assist
any person or entity other than the Company to secure any benefit from the
Confidential Information or any part thereof or to solicit business from or
provide services or products of any type to any of the Company’s customers, or (iv) solicit
(on Executive’s behalf or on behalf of any third party) any employee of the
Company for the provision of any services or products which Executive is
prohibited from providing hereunder.

 

5.3           The obligations set forth in
the Section 5 shall survive any termination of the Agreement for any
reason whatsoever.

 

4

 

6.             EQUITABLE
REMEDIES

 

It
is anticipated by the parties that during the term hereof Executive will
continue, on behalf of the Company, to develop and/or provide employment
services with respect to, among other things, the research, development and/or
enhancement of products included in, derivative of or related to such
intellectual property assets of the Company. 
Because of the foregoing, and because of Executive’s unique expertise
and experience in the field of LEDs and semiconductors, the parties acknowledge
and agree that the services to be performed hereunder by Executive are of a
special, unique, unusual, extraordinary or intellectual character, and which
are of peculiar value the loss of which cannot be reasonably or adequately compensated
in damages.  Accordingly, Executive
acknowledges and agrees that the Company shall be entitled to all equitable
remedies including injunctive relief to enforce the provisions of the
Agreement.

 

7.             SURRENDER
OF BOOKS AND RECORDS

 

All
notes, data, reference materials, sketches, drawings, memoranda, documentation
and records in any way incorporating or reflecting any of the Confidential
Information and all proprietary rights therein, including copyrights, shall, as
between the Company and Executive, belong to the Company, and Executive agrees
to turn over all copies of such materials in Executive’s control to the Company
upon request or upon termination of Executive’s relationship with the
Company.  Executive agrees that on the
termination of his relationship with the Company in any manner, he will
participate in an exit interview conducted by a representative of the Company.

 

8.             SEVERABILITY

 

To
the extent that any provision of this Agreement shall be unlawful, invalid,
void or unenforceable for any reason, it shall be deemed severable from, and
shall in no way affect the validity or enforceability of, the remainder of such
provision (if any) or of this Agreement, which shall remain valid and
enforceable according to its terms.  In
furtherance of, and not in limitation of, the foregoing, should the duration or
geographical extent of, or business activities covered by, any provision of
this Agreement be in excess of that which is valid and enforceable under
applicable law, than such provision shall be deemed narrowed to the broadest
term, coverage or scope permitted by applicable law.

 

9.             MISCELLANEOUS

 

9.1           Assignment.  Executive’s rights, duties and
responsibilities under this Agreement may not be assigned, delegated, or
otherwise transferred by Executive in any manner without the prior express
written consent of the Company, which the Company may withhold in its
discretion.  This Agreement and all
obligations and benefits of the Company hereunder shall bind and inure to the
benefit of the Company, its respective affiliates, and its respective
successors and assigns.

 

9.2           Notices.  Any notice, request, demand, statement,
authorization, approval or consent required or permitted under this Agreement
shall be in writing and shall be made by, and deemed duly given upon, (a) deposit
in the mail, postage prepaid, registered or certified, 

 

5

 

return receipt requested, (b) personal
delivery, (c) delivery to an overnight courier of recognized reputation,
or (d) facsimile transmission (with confirmation by mail), as follows, or
to such other address and/or such additional parties as any party may specify
by notice given in accordance with the Section 9.2:

 

	
  If to Company:

  	
  SemiLEDs Corporation

  	
   

  
	
   

  	
  40737 Encyclopedia Circle

  	
   

  
	
   

  	
  Fremont, California 94538

  	
   

  
	
   

  	
  Fax: (408) 716-2452

  	
   

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
  Anh Chuong Tran

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

All
such notices and communications hereunder shall be deemed given when received,
as evidenced by the acknowledgment of receipt issued with respect thereto by
the applicable postal authority or the signed acknowledgment of receipt of the
person to whom such notice or communication shall have been addressed.

 

9.3           Entire Agreement.  This Agreement, the schedules referred to
herein and the Proprietary Information and Inventions Agreement constitute the
entire contract between the parties with respect to the subject matter covered
by this Agreement, and supersede all previous discussions, negotiations, oral
or written, representations, statements, arrangements, agreements and
understandings, if any, by and among the parties with respect to the subject
matter covered by this Agreement other than those herein, and any such
discussions, negotiations, oral or written, representations, statements,
arrangements, agreements and understandings are hereby canceled and terminated
in all respects.  This Agreement may not
be amended, changed or modified except by a writing duly executed by the
parties hereto or their duly authorized representatives.  All amendments or modifications of this
Agreement shall be binding upon the parties despite any lack of consideration
so long as the same shall be in writing and executed by the parties
hereto.  The parties have made no
representations or warranties not expressly set forth in this Agreement.

 

9.4           Remedies.  All rights and remedies of the parties are
separate and cumulative, and no one of them, whether exercised or not, shall be
deemed to be to the exclusion of or to limit or prejudice any other legal or
equitable rights or remedies which the parties may have.  The parties shall not be deemed to waive any
of their rights or remedies under this Agreement, unless such waiver is in
writing and signed by the party to be bound. 
No delay or omission on the part of any party in exercising any right or
remedy shall operate as a waiver of such right or remedy or any other right or
remedy.  A waiver on any one occasion
shall not be construed as a bar to or waiver of any right or remedy on any
future occasion.

 

9.5           Counterparts.  This Agreement may be executed in
counterparts, each of which shall constitute an original, but all of which
together shall constitute one and the same agreement.  A fascimile signature page shall be
deemed an original.

 

6

 

9.6           Choice of Law.  The rights and obligations of the parties
hereto shall be construed and enforced in accordance with and governed by the
laws of the state of California, excluding that body of law known as conflicts
of law.

 

9.7           Arbitration.  The parties agree to first negotiate in good
faith to resolve any disputes arising out of or relating to or affecting the
subject matter of this Agreement.  Any
dispute arising out of or relating to or affecting the subject matter of this
Agreement not resolved by negotiation shall be settled by binding arbitration
in Santa Clara County, California before the Judicial Arbitration and Mediation
Services, Inc. (“JAMS”) under the JAMS Rules of Practice and
Procedure.  Arbitration may be initiated
by either the Company or Executive. 
Simplot shall have the right to initiate an arbitration proceeding under
this Agreement on behalf of the Company to determine the Breach (as defined in
the Stock Restriction Agreement).  The
arbitrator shall be a former judge of a court of California.  Any judgment upon the award may be confirmed
and entered in any court having jurisdiction thereof.  The arbitrator shall be required to, in all
determinations, apply California law without regard to its conflicts of law
provisions.  Notwithstanding the
foregoing, the arbitrator shall be free to apply the substantive law of the
state of incorporation of the Company, where applicable.  The arbitrator may order any provisional
remedies, including, without limitation, injunctive relief.  The Company shall pay all arbitration fees,
deposits and administrative costs, including expert witness fees.  The arbitrator may award the prevailing party
reasonable attorneys’ fees and expenses. 
The arbitrator’s award shall be in writing and shall state the reasons
for the award.  The parties stipulate
that a JAMS employee may be appointed as a judge pro tempore of the Superior
Court of Santa Clara County if required to carry out the terms of this
provision.  Arbitration shall be the sole
and exclusive means to resolve any dispute.

 

9.8           Binding Effect.  This Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective successors,
permitted assigns and legal and personal representatives.

 

9.9           Legal Advice and
Construction of Agreement.  Both
the Company and Executive have received, or have had sufficient opportunity to
receive, independent legal advice with respect to the advisability of entering
into this Agreement, and neither has been entitled to rely upon or has in fact
relied upon the legal or other advice of the other party or such other party’s
legal counsel in entering into this Agreement. 
Each party has participated in the drafting and preparation of this
Agreement, and accordingly, in any construction or interpretation of this
Agreement, the same shall not be construed against any party by reason of the
source of drafting.

 

9.10         Effective Date.  This Agreement shall become effective as of
the closing of the Company’s Series A Preferred Stock financing in which
Simplot invests a minimum of $11,000,000 (including the conversion of
convertible notes) (the “Series A
Closing Date”).

 

[Signature Page Follows]

 

7

 

IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the
date first above written.

 

AUTHORIZED
SIGNATURES

 

For
the purpose of binding the parties to the above Agreement, the parties or their
duly authorized representatives have signed their names below as of the date
set forth above.

 

	
  COMPANY

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
  SEMILEDS
  CORPORATION

  	
   

  	
  ANH
  CHUONG TRAN

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Trung Tri Doan

  	
   

  	
  /s/
  Anh Chuong Tran

  
	
   

  	
  Trung
  Tri Doan, CEO

  	
   

  	
   

  

 

Signature
Page

 

 

Exhibit A

 

SemiLEDs Corporation

 

PROPRIETARY INFORMATION AND

INVENTIONS AGREEMENT FOR EMPLOYEES

 

SemiLEDs
Corporation and its affiliates (collectively, the “Company”) are engaged in a
continuous effort of technical innovation, product development and marketing,
and administration of the Company’s business. 
The success of these efforts depends on the Company’s ability to draw
upon the creative talents of its employees and to maintain the flow of
information among its employees.  For
this reason, the undersigned is requested to sign this Agreement under which:

 

A.            The employee
agrees to protect against unauthorized disclosure of confidential information
of the Company or other persons and to return to the Company such information
when employee’s employment with the Company terminates;

 

B.            The employee
agrees to disclose, and agrees that the Company will exclusively own, ideas,
works and inventions which relate to or in any way arise from the Company
business;

 

C.            The employee
agrees to avoid conflicting outside activities while employed by the Company;

 

D.            The employee
agrees that the employee will not solicit other Company employees for one year;
and

 

E.             The Company and
employee agree on the manner in which disputes will be resolved.

 

In
consideration for the compensation received by me for employment with the
Company, and effective as of the date that my employment commences, I
agree as follows:

 

1.             Term of
Employment.  I
understand that the Company may terminate my employment at any time, but my
obligations under this Agreement shall survive such termination.

 

2.             Protection of Confidential
Information.

 

2.1           Confidentiality Obligations.  During and after the term of my employment, I
will regard and preserve as confidential, and will not divulge to any unauthorized
persons, or use for any unauthorized purposes, nor will I authorize or
encourage any other person to divulge or use for any unauthorized purposes, any
information, matter or thing of secret, confidential or private nature
connected with the products, services, research, development or business of the
Company (“Confidential Information”) without the written consent of an officer
of the Company.  However, once particular
Confidential Information becomes public knowledge, except through my own fault,
that Information is no longer subject to these obligations.

 

A-1

 

2.2           Examples of Confidential
Information. 
Confidential Information includes, by way of example but not of
limitation, such items as know-how, formulae, designs, schematics, pricing or
cost information, telephone lists, salary and compensation information,
inventions, research projects, plan for future development and any other
information of a similar nature. 
Confidential Information also includes the Work Product (as defined in Section 3.1
below), as well as confidential or proprietary information of a third party to
whom Company owes a duty of confidentiality or non-use.

 

2.3           Unauthorized Persons and Purposes.  As used in this Section 2,
an “unauthorized person” means any person who (i) does not have a need to
know the information to further a Company-authorized purpose, or (ii) who
has such a need but is not obligated to maintain such information in confidence
and to use such information only for a Company-authorized purpose.  An “unauthorized purpose” means a purpose
that does not further the interests of the Company or that is not otherwise
approved in writing by an officer of the Company.

 

3.             Disclosure and Assignment to
Company of Work Product.

 

3.1           Definition of Work Product.

 

“Work
Product” means any and all ideas, inventions, improvements, discoveries,
know-how, techniques and works of authorship (including but not limited to
logic design and documentation) and other information and materials relating to
light emitting diodes (“LED”) and LED-related products, and to the development,
design, manufacture, production, assembly, packaging, marketing, and
distribution thereof by the Company, whether or not patentable, copyrightable
or otherwise registrable under applicable statutes, that I may make, conceive,
reduce to practice, develop, learn or work on, either alone or jointly with
others, whether or not reduced to drawings, written description, documentation,
models or other tangible form during the period of my employment by the
Company.

 

“Work
Product” shall also include, but shall not be limited to, all inventions, trade
secrets and other information that is related to or useful in the business of
the Company or to the Company’s actual or anticipated research, design,
development, experimental production, financing, manufacturing, licensing,
distribution or marketing activity carried on by the Company, or that results
from any work performed by me for the Company.

 

However,
pursuant to California Labor Code § 2870, “Work Product” does not include any
invention that I developed entirely on my own time and for which no equipment,
supplies, facilities or trade secret information of the Company was used, and
which (i) is not related to or useful in the business of the Company or to
the Company’s actual or demonstrably anticipated research, design, development,
experimental production, financing, manufacturing, licensing, distribution or
marketing activity carried on by the Company, or (ii) does not result from
any work performed by me for the Company. 
These inventions are referred to as “Employee Inventions.”

 

A-2

 

3.2           Company owns Work Product.  I agree that the Company and its assigns will
be the exclusive owner of the Work Product, and all patents, trademarks,
copyrights, moral rights and other statutory or common law protections in any
and all countries (“IP Rights”) for the Work Product.  Without further compensation or
consideration, and to the extent Company does not otherwise obtain exclusive
ownership of these IP Rights by operation of law, I agree to, and do
hereby, assign to the Company any and all IP Rights in the Work Product.

 

3.3           Maintenance of Records.  I agree to keep and maintain adequate and
current written records of all Work Product made by me (solely or jointly with
others) during the term of my employment with the Company.  The records will be in the form of notes,
sketches, drawings, computer files, engineering log books, inventor notebooks,
prototypes, samples, or any other format that may be specified by the
Company.  The records will be available
to and remain the sole property of the Company at all times.

 

3.4           Protection of Rights in Work
Product.  I will
assist the Company in every proper way (such as by signing documents and giving
evidence and testimony), at the Company’s expense, to perfect Company’s
ownership of all IP Rights in the Work Product, and otherwise to obtain for
Company (or its nominees) full rights and advantages of the Work Product, in
any and all countries.

 

4.             No Conflicting Obligations.

 

4.1           No Conflict of Interest.  During my employment with the
Company, I will inform the Company before accepting any employment with
another person or entity in any field related to the Company’s business.  Company’s failure to object to any particular
outside activity does not in any way reduce my obligations under this
Agreement.

 

4.2           No Breach of Other Obligations.  I represent that my performance
of all the terms of this Agreement and that my employment by the Company does
not and will not breach any agreement to keep in confidence proprietary
information acquired by me in confidence or in trust prior to my employment by
the Company.  In particular, I will
not disclose to Company, or induce Company to use, any confidential information
or material in violation of the rights of my former employer or any third
party.  I represent and warrant that I
have returned all property and confidential information belonging to all prior employers.  I have not entered into, and I agree I will
not enter into, any agreement (either written or oral) in conflict with this
Agreement.

 

5.             Return of
Materials.  The Confidential Information, the records
described in Section 3.3 above and any and all other files, data,
documents, equipment, and other information and physical property furnished to
me by the Company, or produced by myself or others in connection with my
employment, shall be and remain the sole property of the Company.  I will return promptly to the Company all
such property as and when requested by the Company.

 

6.             Notification
of New Employer.  If I leave
the employ of the Company, I consent to the notification of my new
employer of my rights and obligations under this Agreement.

 

7.             Dispute
Resolution Procedure.  I
agree that any dispute arising out of or related to the employment relationship
between me and the Company, including the termination of that 

 

A-3

 

relationship, and any allegations of unfair
or discriminatory treatment arising under state or federal law or otherwise,
shall be resolved in accordance with the dispute resolution procedures as set
forth an employment agreement, dated the date hereof, between me and the
Company (the “Employment Agreement”).

 

8.             Miscellaneous
Clauses.  This
Agreement, together with the Employment Agreement, constitutes the entire
agreement, and supersedes all previous or contemporaneous agreements or
representations, whether oral or written, express or implied, between the
Company and me with regard to its subject matter.  These Agreements cannot be modified or waived
unless in writing, signed by me and the President of the Company (or his or her
designee).  If any term or provision of
the Agreement is declared invalid, illegal or unenforceable, such term or
provision will be amended to achieve as nearly as possible the same effect of
protecting Confidential Information as the original term or provision, and all
remaining provisions will continue in full force and effect.  This Agreement is binding upon my heirs,
executors, administrators or other legal representatives and inures to the
benefit of successors and assigns of the Company.  This Agreement is governed by and construed
in accordance with the laws of the State of California, excluding that body of
law known as conflicts of law.

 

[Signature Page Follows]

 

A-4

 

I
certify and acknowledge that I have carefully read all of the provisions of
this Agreement and that I understand and will fully and faithfully comply with
such provisions.

 

Dated:  March 15, 2005

 

	
  ANH
  CHUONG TRAN

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/
  Anh Chuong Tran

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGED
  AND AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SEMILEDS CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Trung Tri Doan

  	
   

  
	
   

  	
  Trung Tri Doan, CEO

  	
   

  

 

Signature
Page

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]