Letter Agreement, dated February 3, 2020, by and between Transphorm and Yaskawa

Yaskawa Electric Corporation (“Yaskawa”), the leading global manufacturer of low and medium voltage variable frequency drives, servo systems, machine controllers and industrial robots, has decided to develop a long term cooperation with Transphorm Inc. (“Transphorm”). Yaskawa is willing to enter into individual development agreements with Transphorm to use Transphorm’s GaN power device products for a variety of industrial power conversion applications commencing with servo motor and variable frequency drive applications when Yaskawa determines that a given development activity would provide benefit to Yaskawa.

At this time, Yaskawa plans to provide $4M to fund the development activities at Transphorm commencing in May 2020, (with approximately $1M funded in calendar year 2020).

Transphorm has been supported by Yaskawa for several years including a funding of$15M in 2017 and this latest agreement is a result of that strong partnership.