On January 8, 2019, SemiLEDs Corporation entered into a secured loan agreement with Trung Doan, its Chairman and Chief Executive Officer, with an aggregate amount of $1.7 million and an annual interest rate of 8%. The Loan Agreement is secured by a second priority security interest on the Company?s headquarters building. The maturity date of the Loan Agreement was January 14, 2021.

On January 16, 2021, the maturity date of the Loan Agreement was extended with same terms and interest rate for one year to January 15, 2022, and on January 14, 2022, the maturity date of the Loan Agreement was extended again with same terms and interest rate for one more year to January 15, 2023. On January 13, 2023, the maturity date of the Loan Agreement was further extended with same terms and interest rate for one year to January 15, 2024. On January 7, 2024, the Company amended the Loan Agreement to extend the maturity date to January 15, 2025.

All other terms and conditions of the Loan Agreement remain the same. On February 9, 2024, the Company and Trung Doan entered into the Fifth Amendment to the Loan Agreement. The Amended Loan Agreement, upon the mutual agreement of the Company and Trung Doan, permits the Company to repay any principal amount or accrued interest, in an amount not to exceed $800,000, by issuing shares of the Company?s common stock to Trung Doan as partial repayment of the Loan Agreement at a price per share equal to the closing price of the Company?s common stock immediately preceding the business day of the payment notice date.

On February 9, 2024, the Company delivered a payment notice indicating its intent to prepay $800,000 of loan principal by delivering 629,921 shares of the Company?s common stock to Mr. Doan, based on the closing price of $1.27 per share on February 8, 2024. The shares of common stock were issued in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended.