Document:

Foundry Agreement with Advanced Semiconductor Manufacturing Corp. of Shanghai

  
 Exhibit 10.5

  
 MONOLITHIC POWER SYSTEMS, INC HAS REQUESTED THAT PORTIONS OF THIS DOCUMENT
BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 406 OF REGULATION C PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. ACCORDINGLY, CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. OMITTED
INFORMATION HAS BEEN REPLACED BY [*]. 
  
 Dated this 14th day of August 2001 
  
 Between 
  
 MONOLITHIC POWER SYSTEMS, INC. 
  
 and 
  
 ADVANCED SEMICONDUCTOR
MANUFACTURING CORP. 
 OF SHANGHAI 
  

  
 FOUNDRY AGREEMENT

  

  

 CONTENTS 
  

					
	Clause

	  	Page

	1.	  	DEFINITIONS	  	1
	2.	  	MANUFACTURE OF WAFERS	  	2
	3.	  	QUALIFICATION AND MODIFICATION	  	2
	4.	  	PRODUCTION PLANNING	  	3
	5.	  	PURCHASE ORDERS	  	4
	6.	  	PRICING AND PAYMENT TERMS	  	4
	7.	  	QUALITY CONTROL AND INSPECTION	  	5
	8.	  	PROCEDURE FOR CUSTOMER RETURNS	  	5
	9.	  	PRODUCTION HALTS	  	6
	10.	  	DELIVERY	  	6
	11.	  	TERM AND TERMINATION	  	7
	12.	  	FORCE MAJEURE	  	8
	13.	  	USE RESTRICTION AND LIMITATION OF LIABILITY	  	8
	14.	  	CONFIDENTIALITY	  	9
	15.	  	NOTICES	  	10
	16.	  	WAIVER AND REMEDIES	  	10
	17.	  	SEVERANCE	  	11
	18.	  	ENTIRE AGREEMENT	  	11
	19.	  	NO ASSIGNMENT OR SUB-CONTRACTING	  	11
	20.	  	GOVERNING LAW	  	11
	21.	  	ARBITRATION	  	11

  

			
	Agreed Price Quotations for Wafers	  	Appendix A
	 Qualification of process and product and
 Electrical Test
and Electrical Parameters
	  	Appendix B
	Acceptance Criteria	  	Appendix C
	Change Request Procedure	  	Appendix D
	Process Change Requests	  	Appendix E
	Procedure for Customer Returns	  	Appendix F
	Cancellation Fee	  	Appendix G

  

 THIS FOUNDRY AGREEMENT is made this 14th day of August 2001 (the “Effective Date”) by and between: 
  

(1) Monolithic Power Systems, Inc., with its principal place of business at 3777 Stevens Creek Blvd., Suit 400, Santa Clara, CA 95051-7364,
U.S.A. (hereinafter referred to as ‘MPS’); and 
  
 (2) ADVANCED SEMICONDUCTOR MANUFACTURING CORP. OF SHANGHAI (ASMC), with a principal place of business at 385 Hong Cao Road, Shanghai 200233, China. 
  
 WHEREAS 
  
 (A) MPS has designed and developed certain integrated circuit products and desires to have wafers manufactured to its specifications for the purposes of
manufacturing such products; 
  
 (B) ASMC is in the business of
manufacturing and selling semiconductor wafers; and 
  
 (C) MPS
and ASMC desire to enter into an agreement for the purpose of having ASMC manufacture wafers for MPS. 
  
 NOW IT IS HEREBY AGREED as follows: 
  
 1. DEFINITIONS 
  
 1.1 In this Agreement, unless otherwise defined or the context otherwise requires, the following words and expressions shall bear the
following meanings: 
  
 ‘Acceptance
Criteria’ shall mean the visual inspection criteria, electrical test and electrical parameters and other criteria for each Product to be met by ASMC prior to delivery of Wafers and mutually agreed upon by the Parties. The Acceptance
Criteria is set out in Appendix C; 
  
 ‘Masks’ means the masks and reticle sets used by ASMC in the production of Wafers for MPS; 
  
 ‘Products’ means MPS’s integrated circuit products identified by MPS’s product part numbers listed in
MPS’s purchase orders; 
  
 ‘Scheduled Delivery Date’ has the meaning set out in Clause 5.1; 
  
 ‘Wafers’ means silicon wafers containing finished die for the Products manufactured by ASMC in accordance with the terms
of this Agreement. 
  
 ‘Process
Technology’ means the process flow or the combination of manufacturing process modules for making each individual semiconductor device. 
  

 1.2 References to recitals, clauses and appendices are references to recitals, clauses
and appendices of this Agreement. 
  
 1.3 The
headings in this Agreement are inserted for convenience only and shall be ignored in the interpretation of this Agreement. 
  
 1.4 Unless the context otherwise requires, words denoting the singular number shall include the plural and vice versa, words importing the
masculine gender shall include the feminine gender and words importing a person shall include a company or corporation and vice versa. 
  
 2. MANUFACTURE OF WAFERS 
  
 2.1 ASMC shall manufacture Wafers for MPS in accordance with the terms of this Agreement. 
  
 2.2 MPS shall furnish ASMC with all requisite technical
support and assistance in starting up the manufacture of Wafers at ASMC’s wafer manufacturing facilities (‘the facilities’) on terms and conditions to be mutually agreed. MPS shall also assist, if it requires wafer sort and test
services from ASMC, in starting up sort and test capabilities for the Wafers at the facilities. MPS shall bear mutually agreed upon non-recurring engineering costs incurred in the start-up of the manufacture of the Wafers at the facilities.

  
 2.3 MPS shall provide at its own expense all
requisite Masks which meet ASMC’s tooling specifications to ASMC within reasonable time for the manufacture of Wafers. The Parties agree that lot starts shall be initiated only after Masks meet ASMC’s tooling and other specifications. MPS
shall bear the costs of any Wafer lots put on hold by reason of the non-availability of the Masks. Alternatively, MPS may authorise ASMC to procure at MPS’s expense and on terms mutually agreed beforehand, the Masks from a designated
third-party contractor. Such Masks will be subject to ASMC’s in-coming reticle inspection criteria and qualification process. 
  
 2.4 Ownership of the MPS products and MPS proprietary Process technologies: MPS will retain and own exclusively throughout the world all
right, title, and interest in the Products and designs, patents, copyrights, mask work rights and proprietary process technologies. ASMC shall not disclose any information related to MPS’s products and proprietary Process technologies to third
parties without written permission from MPS. ASMC will not use MPS’s proprietary process technologies for any other customers. 
  
 2.5 ASMC will not disclose to the third parties the cooperation relationship between MPS and ASMC without written permission from MPS.

  
 3. QUALIFICATION AND MODIFICATION 
  
 3.1 The Parties shall, where required by MPS, proceed in
accordance with mutually agreed terms, with the qualification of the relevant ASMC process to be used in the manufacture of Wafers for MPS. ASMC shall provide to MPS the applicable electrical test and electrical parameters for each qualified
process. 
  

 3.2 Upon successful qualification of the manufacturing process, ASMC shall manufacture
the Wafers to conform with the Acceptance Criteria set out in Appendix C. 
  
 3.3 If the changes to the Acceptance Criteria are made otherwise than to correct any defects in the manufacture of Wafers hereunder, the Parties shall in good faith re-negotiate any existing terms and conditions of
purchase (including pricing and delivery commitments) which require amendment as a result of such changes. Changes required shall be submitted to the MPS per procedures defined by Appendix D. 
  
 3.4 Any MPS requests for changes to the process flow for a
Product and/or lot of Wafers shall be evaluated by ASMC in accordance with the ASMC’s Process Request Form (PRF) Procedure referenced in Appendix E, where applicable. Other requested process changes not governed by the Process Request
Procedure, including a request for a non-standard process flow, shall be evaluated by ASMC in accordance with ASMC’s ROI Investigation Procedure for Non-standard Products. 
  
 4. PRODUCTION PLANNING 
  
 4.1 With effect from a date to be agreed by the Parties, MPS shall provide to ASMC no later than the 5th day of each month, its rolling
6-monthly forecast of its monthly volume requirements for Wafers for each relevant Product to be manufactured hereunder. The first 3 months of each 6-monthly forecast shall be backed by purchase orders for such first 3 months. By way of example, by
5th January, MPS shall provide to ASMC purchase orders for February, March and April, and a forecast of MPS’s monthly volume requirements for May, June and July; and by 5th February, MPS shall provide to ASMC purchase orders for May, and a
forecast of MPS’s monthly volume requirements for June, July and August; and by 5th March, MPS shall provide to ASMC purchase orders for June, and a forecast of MPS’s monthly volume requirements for July, August and September; and so on.

  
 4.2 MPS shall use commercially reasonable
efforts to make orders for a minimum of 24 Wafers per lot for 6” wafers, or 49 wafers per lot for 5” wafers. ASMC reserves the right to levy additional charges if Wafer lot sizes ordered are less than 24 Wafers per lot for 6” wafers,
or 49 wafers per lot for 5” wafers. 
  
 4.3
If requested by MPS, ASMC shall establish an in-line production inventory of Wafers for MPS upon mutually agreed terms. ASMC reserves the right to levy additional charges in the event that the ageing of such inventory exceeds 1 month at mutually
agreed terms. 
  
 4.4 In the event that the
actual quantity of Wafers ordered by MPS for the period commencing January 1st of a calendar year, and ending on 31 December of the same year (‘MPS Fiscal Year’) for all Products combined is less than the MPS Purchase Plan for that MPS
Fiscal Year, then the ASMC Capacity Plan to the MPS for the following MPS Fiscal Year shall be re-negotiated and mutually agreed upon, and either Party shall have no other obligation to the other Party with respect to that renegotiated portion of
the MPS Purchase Plan or ASMC Capacity Plan. 
  

 5. PURCHASE ORDERS 
  
 5.1 The purchase and supply of Wafers under this Agreement shall commence only when: 
  
 (a) MPS has issued a purchase order to ASMC; and 

 
 (b) ASMC has returned to MPS such purchase order with
ASMC’s written acknowledgement thereon; 
  
 (c) ASMC has issued to MPS, within 5 business days, a written confirmation of the scheduled delivery date and scheduled starting week (the “Scheduled Delivery Date”) of the Wafers ordered; and 
  
 (d) Subject to Appendix G, MPS may at any time cancel any
purchase order prior to the commencement of manufacturing. 
  
 5.2 All purchase orders issued by MPS shall reference this Agreement. The terms and conditions of this Agreement shall exclusively govern the purchase and supply of Wafers hereunder and shall override any conflicting,
amending and/or additional terms contained in any pricing agreement, MPS’s purchase order, MPS’s acceptance documents or ASMC’s acknowledgement documents. No variation or addition to the terms and conditions contained in this
Agreement shall be binding unless agreed in writing between the authorised representatives of the Parties. 
  
 5.3 The MPS’s purchase order shall contain the Product code, ASMC product code, quantity of Wafers required, requested delivery dates
for such Wafers, Wafer unit costs, a statement as to whether unprobed or probed Wafers are required and other purchase requirements. MPS shall request delivery dates consistent with ASMC’s then prevailing production cycle-times for the relevant
Product specified in MPS’s purchase order. 
  
 6. PRICING
AND PAYMENT TERMS 
  
 6.1 The purchase price
of Wafers charged to MPS shall be in accordance with the terms of the relevant ASMC price quotation agreed to by the Parties for the relevant lots of Wafers purchased. Each Agreed Price Quotation, which shall reference this Agreement, shall be
attached to this Agreement and shall be successively numbered as Appendix A-1, A-2, A-3 etc. 
  
 6.2 Payment term is determined according to credit check. MPS will use L/C as the payment term in first three month of production. After
three months of production, ASMC will review MPS’s credit and determine if give MPS T/T 30 days credit payment term in next phase. ASMC has the right to change the payment term in case MPS has not made the payment according to the agreed upon
time. Any late payment for Wafers shall be subject to interest charges of 1.5% per month. All bank charges outside of Mainland China shall be paid by MPS. 
  

 6.3 All invoices issued by ASMC shall identify the Wafers and the relevant MPS purchase
order number, Product part number, purchase order line and release number, description of items and quantity of items shipped. Unless otherwise agreed by MPS and ASMC in writing, invoices may be mailed no earlier than the relevant date of shipment.

  
 6.4 In the event of any dispute over the
amount invoiced, MPS shall first make payment of the undisputed portion in accordance with Clause 6.2 pending resolution of the dispute between the Parties. 
  
 6.5 MPS shall pay, in addition to the Ex-Works (ASMC Factory) prices of Wafers stipulated herein, the amount of any freight, insurance,
handling and other duties levied on the shipment of Wafers to MPS. MPS shall also pay for all sales, use, excise or other similar taxes levied on the purchase of Wafers by MPS herein. 
  
 7. QUALITY CONTROL AND INSPECTION 
  
 7.1 ASMC will use commercially reasonable efforts to manufacture Wafers to conform with the Acceptance
Criteria set out in Appendix C. Prior to delivery, ASMC shall perform on each lot of Wafers manufactured, the tests specified in the Acceptance Criteria. ASMC will deliver only Wafers which meet the Acceptance Criteria, unless MPS waives such
obligation in accordance with the applicable Waiver Procedures specified in Appendix C, or as mutually agreed between the Parties. 
  
 7.2 If ASMC discovers that the Wafers do not meet any one of the Acceptance Criteria, ASMC shall as soon as reasonably possible effect the
rectification or replacement of the Wafers. 
  
 8. PROCEDURE
FOR CUSTOMER RETURNS 
  
 8.1 The Procedure
for Customer Returns as set out in Appendix F shall apply to Wafers manufactured under this Agreement. The time limit for the return of Wafers due to low sort yield is 60 days from the delivery date of such Wafers, and the time limit for the return
of Wafers due to reliability failures is 1 year from the delivery date of such Wafers. 
  
 8.2 ASMC shall have no liability and shall not be obliged to accept the return of Wafers after the relevant period of 60 days or 1 year,
as the case may be. In addition, ASMC shall be under no liability for defects in the Wafers caused by persons other than ASMC, including, static discharge, abnormal working conditions, fair wear and tear, accident, wilful damage, abuse, misuse,
neglect, improper installation, repair or alteration by persons other than ASMC, improper testing and/or improper storage and/or improper handling or use contrary to any instructions issued by ASMC which are in keeping with generally accepted
industry practices. Further, ASMC shall be under no liability for any parts or materials it has not manufactured. 
  
 8.3 ASMC shall have the discretion to decide whether or not to conduct failure analysis on the Wafers returned by MPS, and if such failure
analysis is conducted, ASMC will, at 

  

 
MPS’s request, provide MPS with copies of the results of such analysis. If ASMC’s failure analysis determines that the defects are due to causes
other than the causes specified in Clause 8.2, then MPS may at its option elect for either a full credit for the purchase price paid for such Wafers, or ASMC’s replacement of the defective Wafers returned to ASMC. If MPS elects for the
replacement of defective Wafers, the manufacture of such Wafers shall have high priority on ASMC’s production schedule. 
  
 8.4 THE FOREGOING STATES ASMC’S ENTIRE LIABILITY, WHETHER IN CONTRACT OR IN TORT FOR DEFECTS IN WAFERS. THE EXPRESS TERMS OF THIS
AGREEMENT ARE IN LIEU OF ALL WARRANTIES, CONDITIONS, TERMS, UNDERTAKINGS, AND OBLIGATIONS IMPLIED BY STATUTE, COMMON LAW, CUSTOM, TRADE USAGE, COURSE OF DEALING OR OTHERWISE, ALL OF WHICH ARE HEREBY EXPRESSLY EXCLUDED TO THE FULLEST EXTENT PERMITTED
BY LAW AND ASMC SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 
  
 9. PRODUCTION HALTS 
  
 9.1 MPS may at any time request ASMC to halt the manufacture of Wafers still in-process and ASMC shall effect production stoppage if
commercially feasible. The manufacture of Wafers shall remain on hold pending written directions from MPS. 
  
 9.2 If MPS decides to cancel its order for Wafers, MPS shall pay to ASMC a Cancellation Fee based on the formula set out in Appendix G.

  
 9.3 ASMC shall, if commercially feasible,
re-start the manufacture of Wafers within a reasonable time after receipt of MPS’s written request, subject to MPS’ s agreement to bear all expenses incurred by ASMC in production stoppage and re-start. ASMC will make no commitments of
yield, reliability and conformance with the Acceptance Criteria in respect of Wafers stopped in process (a) more than one time regardless of the number of days of stoppage, or (b) if the stoppage lasts for more than 30 days. 
  
 10. DELIVERY 
  
 10.1 ASMC shall use its commercially reasonable efforts to
deliver the exact quantity of Wafers stipulated in the relevant MPS purchase order and confirmed by ASMC. However if for each purchase order the aggregate quantity of Wafers delivered by ASMC is either within plus or minus 10% of the quantity
ordered, such quantity shall constitute compliance with MPS purchase order for the purposes of meeting delivery requirements. 
  
 10.2 Unless otherwise agreed by the Parties, Wafers shall be delivered Ex-Works (ASMC’s factory in Shanghai, China). ASMC shall use
its commercially reasonable efforts to deliver within the Scheduled Delivery Date. However if for each purchase order, Wafers are delivered within plus or minus 7 days of the Scheduled Delivery Date, such delivery shall constitute 

  

 
compliance with MPS purchase order. ASMC shall promptly give MPS written notice of any prospective failure to deliver within the Scheduled Delivery Date.

  
 10.3 All quantities of Wafers shall be
delivered in ASMC standard containers with proper labels identifying the specific Product and lot number and shall be accompanied by a packing list specifying the relevant purchase order number, Wafer lot number, Wafer quantity and number of good
un-inked die (if Wafers have been sorted) and agreed upon processing documentation. 
  
 10.4 If MPS fails to take delivery of any quantity of Wafers or fails to give adequate delivery instructions (otherwise than by reason of
any cause beyond MPS’s reasonable control or by reason of ASMC’s fault), then without prejudice to any other right or remedy available to ASMC, ASMC may at its option, store such Wafers until actual delivery and charge MPS for reasonable
costs (including insurance) of storage. 
  
 11. TERM AND
TERMINATION 
  
 11.1 This Agreement shall
commence on the Effective Date and shall continue for a period of 4 years therefrom, unless otherwise extended by the mutual agreement of the Parties or earlier terminated in the following events : 
  
 (a) by agreement of the Parties; 
  
 (b) forthwith by ASMC if MPS fails to pay any sum due to
ASMC hereunder which has been outstanding for a period of 60 days; 
  
 (c) forthwith by either Party if the other commits any material breach of any term of this Agreement and which in the case of a breach capable of being remedied shall not have been remedied within 60 days of a written
request to remedy the same. 
  
 (d) at the option
of either Party, in any of the following events: 
  
 (i) the inability of the other Party to pay its debts in the normal course of business; or 
  
 (ii) the other Party ceasing or threatening to cease wholly or substantially to carry on its business, otherwise than for the purpose of
a reconstruction or amalgamation without insolvency; or 
  
 (iii) any encumbrancer taking possession of or a receiver, trustee or judicial manager being appointed over the whole or any substantial part of the undertaking, property or assets of the other Party; or 

 
 (iv) the making of an order by a court of competent
jurisdiction or the passing of a resolution for the winding-up of the other Party or any company controlling the other Party, otherwise than for the purpose of a reconstruction or amalgamation without insolvency. 
  

 11.2 Termination of this Agreement pursuant to Clause 11.1 shall take effect immediately
upon the issue of a written notice to that effect by the Party terminating the Agreement to the other. The termination of this Agreement however caused shall be without prejudice to any obligations or rights of either Party which have accrued prior
to such termination and shall not affect any provision of this Agreement which is expressly or by implication provided to come into effect on or to continue in effect after such termination. This indemnity shall survive the expiration or termination
of this Agreement 
  
 11.3 MPS shall be
financially responsible for any unused materials if purchased for the exclusive use by MPS if such material was originally purchased in support of MPS’s demand forecast. 
  
 12. FORCE MAJEURE 
  
 12.1 Each Party’s obligations under this Agreement shall be suspended upon the occurrence of a force majeure event such as act of
God, flood, earthquake, fire, explosion, act of government, war, civil commotion, insurrection, embargo, riots, lockouts, labour disputes affecting such Party, for such period as such force majeure event may subsist. Upon the occurrence of a force
majeure event, the affected Party shall notify the other Party in writing of the same and shall by subsequent written notice after the cessation of such force majeure event inform the other Party of the date on which that Party’s obligation
under this Agreement shall be reinstated. 
  
 12.2 Notwithstanding anything in this Clause 12, upon the occurrence of a force majeure event affecting either Party, and such force majeure event continues for a period exceeding 6 consecutive months without a prospect of a cure of such
event, the other Party shall have the option, in its sole discretion, to terminate this Agreement. Such termination shall take effect immediately upon the written notice to that effect from the other Party to the Party affected by the force majeure
event. 
  
 13. USE RESTRICTION AND LIMITATION OF LIABILITY

  
 13.1 MPS accepts all responsibility for
any use or action taken by MPS with respect to Wafers manufactured by ASMC, once ASMC has satisfactorily delivered the said Wafers to MPS or MPS’s agent(s) in accordance with the terms of this Agreement. 
  
 13.2 MPS hereby agrees that the Wafers and Products are not
authorized for use as critical or important components in (a) any medical, life saving or life support devices or systems; or (b) any safety devices or systems in any automotive applications and mechanisms (including but not limited to automotive
brake systems or airbag systems). ASMC shall not be responsible or liable to MPS or any third party for any unauthorized use of the Wafers or Products. As used herein: 
  
 (i) Medical, life saving or life support devices or systems are devices or systems which are intended (aa)
for surgical implant into the human body, or (bb) to support or sustain life, and whose malfunction or failure to perform may result in significant injury or death to the user. 
  

 (ii) A critical or important component is any component of a medical, life saving, life
support or safety device or system whose malfunction or failure to perform may cause the failure of such device or system, or to affect its effectiveness. 
  
 13.3 MPS shall indemnify, hold harmless and defend ASMC, its officers, directors, employees and subcontractors from and against any claim,
suit, demand or action which arise in any way out of, involve or relate to an unauthorized use of any Wafers or Products and MPS shall indemnify and hold harmless ASMC, its officers, directors, employees and subcontractors against any and all direct
losses, liabilities, damages, awards of settlement (including court costs) and expenses (including all reasonable attorney’s fees, whether or not legal proceedings are commenced) arising from any such claim, suit, demand or action. ASMC shall
notify MPS of any such claim or allegation promptly after receiving notice thereof. 
  
 13.4 THE TOTAL LIABILITY OF ASMC ON ALL CLAIMS OF ANY KIND, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR
OTHERWISE ARISING OUT OF THE PERFORMANCE OR BREACH OF THIS AGREEMENT OR USE OF THE WAFERS SHALL NOT EXCEED THE TOTAL AMOUNT RECEIVED BY ASMC FROM MPS IN RESPECT OF THE SALE OF THE WAFERS WHICH GIVES RISE TO THE CLAIM. 
  
 13.5 In no event shall either Party be liable to the other
for any damages with respect to any subject matter of this Agreement under any contract, tort (including negligence), strict liability or other legal or equitable theory for any incidental, consequential, special or indirect damages of any sort even
if such Party has been informed of the possibility of such damages. 
  
 14. CONFIDENTIALITY 
  
 14.1 All
Confidential Information shall be kept confidential by the recipient unless or until the recipient Party can reasonably demonstrate that any such Confidential Information is, or part of it is, in the public domain through no fault of its own,
whereupon to the extent that it is in the public domain or is required to be disclosed by law this obligation shall cease. For the purposes of this Agreement, “Confidential Information” shall mean all communications between the Parties,
and all information and other materials supplied to or received by either of them from the other (a) prior to or on the date or after the date of this Agreement whether or not marked confidential; (b) all information concerning the business
transactions and the financial arrangements of the Parties with any person with whom any of them is in a confidential relationship with regard to the matter in question coming to the knowledge of the recipient. 
  
 14.2 The Parties shall take all reasonable steps to minimise
the risk of disclosure of Confidential Information, by ensuring that only they themselves and such of their employees and directors whose duties will require them to possess any of such information shall have access thereto, and will be instructed
to treat the same as confidential. 
  
 14.3 The
obligation contained in this Clause 14 shall endure, even after the termination of this Agreement, for a period of 5 years from the date of receipt of the Confidential 

  

 
Information except and until such Confidential Information enters the public domain as set out above. 
  
 15. NOTICES 
  
 15.1 Addresses. All notices, demands or other
communications required or permitted to be given or made under or in connection with this Agreement shall be in writing and shall be sufficiently given or made (a) if delivered by hand or commercial courier or (b) sent by pre-paid registered post or
(c) sent by legible facsimile transmission (provided that the receipt of such facsimile transmission is confirmed and a copy thereof is sent immediately thereafter by pre-paid registered post or commercial courier) addressed to the intended
recipient at its address or facsimile number set out below. A Party may from time to time notify the others of its change of address or facsimile number in accordance with this Clause 15. 
  
 Advanced Semiconductor Manufacturing Corp. of Shanghai 

385 Hong Cao Road 
 Shanghai,
200233, China 
 Facsimile #: +86-21-64853925 
  
 Monolithic Power Systems, Inc. 
 3777 Stevens Creek Blvd., Suite 400 
 Santa Clara, CA 95051-7364 
 U.S.A. 
 Facsimile #: +1 408
2430099 
  
 15.2 Deemed Delivery. Any
such notice, demand or communication shall be deemed to have been duly served (a) if delivered by hand or commercial courier, or sent by pre-paid registered post, at the time of delivery; or (b) if made by successfully transmitted facsimile
transmission, at the time of dispatch (provided that the receipt of such facsimile transmission is confirmed and that immediately after such dispatch, a copy thereof is sent by pre-paid registered post or commercial courier). 
  
 16. WAIVER AND REMEDIES 
  
 16.1 No delay or neglect on the part of either Party in
enforcing against the other Party any term or condition of this Agreement or in exercising any right or remedy under this Agreement shall either be or be deemed to be a waiver or in any way prejudice any right or remedy of that Party under this
Agreement. 
  
 16.2 No remedy conferred by any of
the provisions of this Agreement is intended to be exclusive of any other remedy which is otherwise available at law, in equity, by statute or otherwise and each and every other remedy shall be cumulative and shall be in addition to every other
remedy given hereunder or now or hereafter existing at law, in equity, by statute or otherwise. The election of any one or more of such remedies by either of the Parties shall not constitute a waiver by such Party of the right to pursue any other
available remedy. 
  

 17. SEVERANCE. If any provision or part of this Agreement is rendered void, illegal or
unenforceable in any respect under any enactment or rule of law, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 18. ENTIRE AGREEMENT 
  
 18.1 This Agreement and the Appendices constitutes the
entire agreement between ASMC and MPS and shall supersede all previous agreements and undertakings between Parties with respect to the subject matter hereof. 
  

18.2 The following Appendices are hereby deemed a part of this Agreement and incorporated herein by reference. The term
“Agreement” includes the following Appendices: 
  

			
	Appendix A	  	Agreed Price Quotations for Wafers
	Appendix B	  	Qualification of process and product and Electrical Test and Electrical Parameters
	Appendix C	  	Acceptance Criteria
	Appendix D	  	Change Request Procedure
	Appendix E	  	Process Change Requests
	Appendix F	  	Procedure for Customer Returns
	Appendix G	  	Cancellation Fee

  
 18.3
The terms and conditions of the Agreed Price Quotations and this Agreement shall exclusively govern the purchase and supply of Wafers and shall override any conflicting, amending and/or additional terms contained on MPS’s purchase order and/or
acceptance documents which have been or may hereafter be issued by MPS or any acknowledgement or similar documents by ASMC. In the event of any conflict or inconsistency between the terms of this Agreement and the relevant Agreed Price Quotation,
the terms of the Agreed Price Quotation shall prevail. 
  
 19.
NO ASSIGNMENT OR SUB-CONTRACTING. Unless otherwise agreed in writing by the Parties, this Agreement may not be assigned or sub-contracted by either Party to any third party without the prior written consent of the other Party. 
  
 20. GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the substantive laws of the People’s Republic of China. 
  
 21. ARBITRATION. Any dispute arising from or relating to or in connection with this Agreement shall be submitted to China International Economic and Trade Arbitration Commission, Beijing, China for arbitration
which shall be conducted in accordance with the commission’s arbitration rules in effect at the time of applying for arbitration. The arbitral award is final and binding upon both parties. 
  

 IN WITNESS WHEREOF the Parties have hereunto entered into this Agreement as at the date first
above written. 
  

									
			
	       /s/ Deming Xiao
	 	 	 	 
	 Name:
	 	 Deming Xiao
	 	 	 	 
	 Title:
	 	 Foundry Manager
	 	 	 	 8/15/01

			
	 for and on behalf of
 Monolithic Power
Systems, Inc.
	 	 	 	 
			
	       /s/ Sun Zhen
	 	 	 	 
	 Name:
	 	 Sun Zhen
	 	 	 	 
	 Title:
	 	 Sales and Marketing Dept. Manager
	 	 	 	 
			
	 for and on behalf of
 Advanced Semiconductor
Manufacturing Corp. of Shanghai
	 	 	 	 

  

 APPENDIX A 
 (Ref : Clause 6.1) 
  
 AGREED
PRICE QUOTATIONS FOR WAFERS 
  
 Each agreed price
quotation shall reference this Foundry Agreement and shall be attached to this Agreement and successively numbered as Appendix A-1, A-2, A-3, etc. of Foundry Agreement dated August 14, 2001. 
  

 Appendix A 
  

PRICE QUOTATIONS 
  
 1. ASMC – MPS Term Sheet 
  
 1.1 This document summarizes the mutual agreement between ASMC and MPS concerning the manufacture being manufactured by ASMC. 

 
 1.2 The current term of this agreement is in essence from
Aug. 14, 2001 to Aug. 13, 2005, and may be by mutual consent, be extended beyond this term. 
  
 2. Process Technologies 
  
 2.1 The pricing covers the MPS proprietary Process technologies: [*] and its derivatives. 
  
 3. Pricing 
  
 3.1 Pricing for standard production wafers: 
  
 3.1.1 Production Pricing is based on the following assumptions: 
  
 3.1.1.1 Un-probed, PCM wafers 
  
 3.1.1.2 Price validity: Aug. 14, 2001 through Aug. 13, 2005. 
  
 3.1.1.3 Minimum Acceptable Yield: Refer to Appendix C of
Foundry Agreement. 
  
 3.1.2 Price: 

 
 3.1.2.1 : [*] per mask layer and Epi layer for volume
>= 1000 wafers on the quarterly average basis. 
  
 3.1.2.2 : [*] per mask layer and Epi layer for volume < 1000 wafers on the quarterly average basis. 
  
 3.1.3 Price during technology transfer and qualification: [*] per mask layer. The transfer and qualification period should be completed
before Aug. 5, 2002. 
  
 3.2 Pricing for
prototype wafers: 
  
 3.2.1 Pricing for prototype
wafers: [*] premium over the standard production wafer. 
  

 3.2.2 Prototype lot status: Unless MPS requests otherwise, the Prototype lot assumes the
hot lot status, defined as 1.8 days per mask layer. The exception is initial lots which used as setting up process in ASMC, which will take longer times. 
  
 3.2.3 Minimum wafer start for prototype lot: 12 wafers. One split in each lot. If customer ask for more split, the cost is [*] each more
split. 
  
 3.3 Pricing for engineering wafers:

  
 3.3.1 Engineering wafers defined as the
wafers processed with nonproduction process. 
  
 3.3.2 Pricing for engineering wafers: [*] premium over the standard production wafers. 
  
 3.3.3 Engineering lot status: Unless MPS requests otherwise, the Engineering lot assumes the hot lot status, defined as 1.8 days per mask
layer. 
  
 3.3.4 Minimum wafer start for engineer
lot: 12 wafers. One split in each lot. If customer ask for more split, the cost is [*] each more split. 
  
 3.4 Pricing of wafers shall be charged to MPS on wafers shipped, fully processed. Pricing does not include probe or backgrind costs.

  
 3.5 MPS will pay ASMC [*] to cover the cost
of the transfer of its proprietary Process technologies [*] and its derivatives to ASMC. The [*] shall be paid after the signing of the contract and rest of the NRE payment is due after the successful transfer of the MPS process technologies.

  
 The NRE will cover all the engineering cost before process
ready (PCM in spec, and 1st product has above 70% wafer test yield). MPS will pay for mask cost and the
qualification lot cost. 
  
 4. Capacity 
  
 4.1 ASMC Capacity Commitment 
  
 4.1.1 ASMC shall make available a loading commitment subject
to the terms expressed in Section 4.0 PRODUCTION PLANNING in the Foundry Agreement. 
  
 4.1.2 ASMC will advise MPS within 48 hours of request outside the normal monthly forecast whether ASMC can accept an upside to planned
capacity. 
  
 5. Forecasting: 
  
 See section 4.0 of the FOUNDRY AGREEMENT. 
  

 -2- 

 6. Obsolescence 
  
 6.1 MPS shall agree to give ASMC 3 months notification of intent to obsolete the manufacture of the products
to be manufactured in the agreed upon technologies, and will place orders for at least 3 months after notification. 
  
 6.2 ASMC shall agree to give MPS 3 months notification of any intent to obsolete the availability of the technologies, and will accept
orders for at least 3 months after notification. ASMC agrees to accept life time buy orders as by MPS to prevent MPS supply interruption while MPS obtains another supply source. 
  
 7. Terms & Conditions 
  

7.1 If the above assumption sets prove to be invalid, both parties reserve the right to change the terms of the contract as applicable.

  
 7.2 ASMC reserves the right to schedule the
delivery according to Clause 10.2 of the Foundry Agreement. 
  
 7.3 MPS to [*] that meets ASMC’s [*]. ASMC shall provide all [*] at no charge to MPS. 
  
 7.4 MPS assumes full responsibility against any claims on design intellectual property rights. 
  
 8. Effectiveness 
  
 This Price Quotations shall be interpreted and used in conjunction with the
prevailing version of the Foundry Agreement entered into both Parties. 
  
 9. Governing Law 
  
 This Agreement shall be
governed by the laws of The People’s Republic of China. 
  

					
	 Authorizing Signature
	 	 	 	 Authorizing Signature

			
	 Advanced Semiconductor
 Manufacturing Corp of Shanghai
	 	 	 	 Monothic Power Systems, Inc.

			
	 /s/ Sun Zhen
	 	 	 	 /s/ Deming Xiao

	 Name: Sun Zhen
	 	 	 	 Name: Deming Xiao

	 Designation:
	 	 	 	 Designation:

	 Dated: 8/15/01
	 	 	 	 Dated: 8/15/01

  

 -3- 

 APPENDIX B 
 (Ref : Clause 3.1, 3.2) 
  
 QUALIFICATION OF PROCESS AND PRODUCT AND ELECTRICAL TEST 
 AND ELECTRICAL PARAMETERS 
  
 The agreed Electrical Test and Electrical Parameters for each Product shall
be based on the relevant ASMC process which has been qualified, as evidenced by a Release to Production document issued by ASMC. 
  

 APPENDIX C 
 (Ref : Clauses 3.2, 3.3, 7.1) 
  
 ACCEPTANCE CRITERIA 
  
 The Acceptance Criteria for each
Product shall comprise the following: 
  

	A.	Electrical Test and Electrical based on the relevant ASMC process which has been qualified, as evidenced by a Release to Production document issued by ASMC; and

  

	B.	The Wafer Quality and Reliability Criteria set out in this Appendix C. 

  

	C.	Yield criteria: 

  

	 	C.1:	Average yield: The average yield of a specific type is defined as the average yield achieved on the first 10 lots of wafers after this product is released to production.

  

	 	C.2:	Yield criteria: The lot will be returned to ASMC for fully refund if the yield is less than 50% of the average yield, unless MPS requests otherwise. 

  
 The following ASMC procedures shall apply. All procedures shall be subject to change by ASMC
in accordance with the Change Request Procedure specified in Appendix D. 
  
 WAFER QUALITY AND RELIABILITY CRITERIA 
  

			
	WATER SORT
		
	Document No.	  	Document Title
		
	NA	  	Setting of ASMC wafer yield limits in all ASMC wafer sort subcontractors (includes amendments thereto)

  

			
	OUTGOING QUALITY ASSURANCE
		
	Document No.	  	Document Title
		
	 WOQ900104
 Visual Inspection Photo Book
	  	QA Outgoing Wafer Inspection Procedure (includes amendments thereto)
		
	 OQ002Q
 Procedure Outgoing Inspection
	  	QA Outgoing Wafer Packing Procedure (includes amendments thereto)
		
	 MM008Q
 Procedure for Packing Diffused
Wafer
	  	Secondary Wafer Packing Procedure (includes amendments thereto)

  

			
	RELIABILITY QUALIFICATION AND MONITORING
		
	Document No.	  	Document Title
		
	 OQ015Q
 ASMC Wafer Level Reliability Monitoring
Procedure
	  	Process Reliability Qualification Requirements (includes amendments thereto)
		
	 OQ015Q
 ASMC Wafer Level Reliability Monitoring
Procedure
	  	Process Reliability Monitoring Requirement (includes amendments thereto)

  
 WAIVER
PROCEDURES 
  

			
	Document No.	  	Document Title
		
	 OQ011 Q
 Material Review Board Procedure
	  	Material Review Board Procedure (includes amendments thereto)
		
	 OQ005Q
 Procedure for Concession Request
	  	Waiver Request Procedure (includes amendments thereto)

  

 -2- 

 APPENDIX D 
 (Ref : Clause 3.3) 
  
 CHANGE
REQUEST PROCEDURE 
  
 The following ASMC procedures shall
apply. All procedures shall be subject to change by ASMC in accordance with the Change Request Procedure set out in this Appendix D. 
  

			
	Document No.	  	Document Title
		
	 DCOIOQ
 Process Change Customer Approval
Requirement
	  	Major and Minor Change Definition (includes amendments thereto)
		
	 D0007Q
 TPD Change Procedure
	  	Change Request Execution (includes amendments thereto)

  

 APPENDIX E 
 (Ref: Clause 3.4) 
  
 PROCESS
CHANGE REQUESTS 
  
 The ASMC specifications set out in the
following documents are deemed a part of and are incorporated into this Agreement by reference: 
  

			
	Document No.	  	Document Title
		
	 D0007Q
 TPD Change Procedure
	  	Process Request Form (PRF) Procedure (includes amendments thereto)

  

 APPENDIX F 
 (Ref : Clause 8.1) 
  
 PROCEDURE FOR CUSTOMER RETURNS 
  
 The
following ASMC procedures shall apply. All procedures shall be subject to change by ASMC in accordance with the Change Request Procedure set out in Appendix D. 
  

			
	Document No.	  	Document Title
		
	 OQ016Q
 Procedure for Customer Return
  
 OQ012Q
 Procedure for Customer Complaints (Technical)
	  	Procedure for Customer Returns (includes amendments thereto)

  

 APPENDIX G 
 (Ref : Clause 9.2) 
  
 CANCELLATION FEE 
  
 The Cancellation Fee payable by MPS
upon cancellation of delivery of each Wafer in a purchase order will be calculated as follows: 
  
 CF = [(CS divided by TS) x (P - R)] + R + T 
  

			
	where	  	 
		
	‘CF’	  	means the cancellation fee payable by MPS.
		
	‘CS’	  	means the number of completed manufacturing steps as at the date of cancellation.
		
	‘TS’	  	means the total number of manufacturing steps required to produce the Wafers had there not been any cancellation.
		
	‘P’	  	refers to the purchase price of the Wafer as set out in the applicable Agreed Price Quotation.
		
	‘R’	  	refers to the raw wafer cost incurred by ASMC.
		
	‘T’	  	refers to any applicable sales, use, excise or other similar taxes levied on or otherwise payable in connection with the Cancellation Fee.

  
 ASMC shall not charge MPS for the
cancellation of orders if the wafers of the orders have not been started.Separation Agreement and Release and Consulting Agreement w/Brian McDonald

 Exhibit 10.10 
  
 SEPARATION AGREEMENT AND RELEASE 
  
 RECITALS 
  
 This Separation Agreement and Release (“Agreement”) is made by and between Brian McDonald (“Employee”) and Monolithic Power Systems,
Inc. (the “Company”) (jointly referred to as the “Parties”): 
  
 WHEREAS, Employee was employed by the Company; 
  
 WHEREAS, the Employee and the Company entered into an Employment Agreement effective July 26, 2002 (the “Employment Agreement”); 
  
 WHEREAS, the Company and Employee entered into an Employee Confidential Information and Invention Assignment Agreement dated
August 5, 2002 (the “Confidentiality Agreement”); 
  
 WHEREAS, the Company granted Employee an option (“Option 1”) to purchase 400,000 shares of the Company’s common stock (“Common Stock”) on August 20, 2002 under the Company’s 1998 Stock Plan (the
“Plan”), subject to the terms of the Plan and the option agreement executed by the Company and Employee relating to Option 1 (“Option Agreement 1”), an option (“Option 2”) to purchase 40,000 shares of Common Stock on
November 6, 2003 under the Plan, subject to the terms of the Plan and the option agreement executed by the Company and Employee relating to Option 2 (“Option Agreement 2”), and an option (“Option 3” and together with Option 1 and
Option 2, the “Options”) to purchase 10,000 shares of Common Stock on January 28, 2004 under the Plan, subject to the terms of the Plan and the option agreement executed by the Company and Employee relating to Option 3 (“Option
Agreement 3” and together with Option Agreement 1 and Option Agreement 2, the “Option Agreements”); 
  
 WHEREAS, the Company has agreed to accept Employee’s resignation as its Vice President of Finance and Administration and Chief Financial Officer and
his relinquishment of all other officer and director positions with the Company and its affiliates as of June 22, 2004 (the “Resignation Date”); and 
  

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions and demands that the Employee
may have against the Company, including, but not limited to, any and all claims arising or in any way related to Employee’s employment with or separation from the Company. 
  
 NOW THEREFORE, in consideration of the promises made herein, the Parties hereby agree as follows: 
  
 COVENANTS 
  
 1. Consideration. 

 (a) Severance Payment. The Company agrees to pay Employee the lump sum equivalent
of two (2) weeks of his base salary (as in effect on the Resignation Date), less applicable withholding, in accordance with the Company’s regular payroll practices. This payment will be made to Employee within five (5) business days after the
Effective Date. 
  
 (b) Consulting.
Commencing on the Resignation Date, Employee will make himself available to serve as a consultant to the Company through September 24, 2004 (the “Consulting Term”), pursuant to the written consulting agreement (the “Consulting
Agreement”), attached hereto as Exhibit A. 
  
 2.
Options. The Parties acknowledge and agree that one hundred eighty three thousand three hundred thirty-three (183,333) shares of Common Stock subject to Option 1 have vested as of the Resignation Date, zero (0) shares of Common Stock subject
to Option 2 have vested as of the Resignation Date, and zero (0) shares of Common Stock subject to Option 3 have vested as of the Resignation Date. The Parties hereby agree that no further shares will vest under the Options from and after the
Resignation Date. The vested portion of Option 1 will remain outstanding following the Resignation Date and will continue to be subject to the terms and conditions of the Plan and the applicable Option Agreement. Option 2 and Option 3 will cease to
exist and be cancelled and Employee will have no further rights with respect to Option 2 and Option 3. The portion of Option 1 that has not vested as of the Resignation Date will cease to exist and be cancelled and Employee will have no further
rights with respect to such unvested portion of Option 1. Employee will continue to be a Service Provider for purposes of the Plan and the Option Agreements, pursuant to the Consulting Agreement. The Company shall provide written notice to Employee
not more than five (5) business days after Employee ceases to be a Service Provider for purposes of the Plan and Option Agreements; provided, however, that the Company shall have no obligation to provide such notice when Employee ceases to be
a Service Provider for purposes of the Plan and Option Agreements because the Consulting Agreement expires by its own terms. Employee acknowledges that if any of the Options have been classified as “incentive stock options” within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended, such Options will convert into nonstatutory stock options three (3) months and one (1) day after the Resignation Date. Furthermore, Employee acknowledges that in the event the
Options are classified as nonstatutory stock options on the date such Options are exercised, the income recognized upon such exercise will be considered wages that must be reported on Employee’s W-2 and applicable tax withholding will be
required. Employee agrees that the Company may refuse to process any such exercise until Employee has made arrangements satisfactory to the Company to satisfy any such withholding obligations. 
  
 3. Benefits. Employee’s health insurance benefits will cease on
June 30, 2004, subject to Employee’s right to continue his health insurance under COBRA. Employee’s participation in all other benefits and incidents of employment will cease on the Resignation Date. Employee will cease accruing employee
benefits, including, but not limited to, vacation time and paid time off, as of the Resignation Date. 
  
 4. Confidential Information. Employee will continue to maintain the confidentiality of all confidential and proprietary information of the Company
and will continue to comply with the terms and conditions of the Confidentiality Agreement between Employee and the Company. Employee 

 will return all of the Company’s property and confidential and proprietary information in his possession to the
Company. 
  
 5. Payment of Salary and Benefits. Employee
acknowledges and represents that the Company has paid all salary, wages, bonuses, accrued vacation, commissions and any and all other benefits due to Employee through the Resignation Date. Employee ceased accruing employee benefits, including, but
not limited to, vacation time and paid time off, as of the Resignation Date. 
  
 6. Release of Claims. Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its officers, managers, supervisors,
agents and employees. Employee, on his own behalf, and on behalf of his respective heirs, family members, executors, agents, and assigns, hereby fully and forever releases the Company and its current and former officers, directors, employees,
agents, investors, shareholders, attorneys, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns (“the Releasees”), from, and agrees not to sue concerning, any claim, duty, obligation or
cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess arising from any omissions, acts or facts that have occurred up until and including the Effective Date of
this Agreement including, without limitation: 
  
 (a) any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that relationship; 
  

(b) any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the
Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law; 
  
 (c) any and all claims under the law of any jurisdiction
including, but not limited to, wrongful discharge of employment, constructive discharge from employment, termination in violation of public policy, discrimination, harassment, retaliation, fraud, fraudulent inducement, breach of contract, both
express and implied, breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppel, negligent or intentional infliction of emotional distress, negligent or intentional misrepresentation, negligent or intentional
interference with contract or prospective economic advantage, unfair business practices, defamation, libel, slander, negligence, personal injury, assault, battery, invasion of privacy, false imprisonment, conversion, workers’ compensation and
disability benefits; 
  
 (d) any and all claims
for violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act
of 1990, the Fair Labor Standards Act, the Family and Medical Leave Act, the California Family Rights Act, the Employee Retirement Income Security Act of 1974, the Older Workers Benefit Protection Act, The Worker Adjustment and Retraining
Notification Act, the California Fair Employment and Housing Act, and the California Labor Code; 

 (e) any and all claims for violation of the federal, or any state, constitution;

  
 (f) any and all claims arising out of any
other laws and regulations relating to employment or employment discrimination; 
  
 (g) any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of
the proceeds received by Employee as a result of this Agreement; and 
  
 (h) any and all claims for attorneys’ fees and costs. 
  
 The Company and Employee agree that the release set forth in this section will be and remain in effect in all respects as a complete
general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. 
  
 7. Acknowledgement of Waiver of Claims Under ADEA. Employee acknowledges that he is waiving and releasing any rights he may have under the Age
Discrimination in Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary. Employee and the Company agree that this waiver and release does not apply to any rights or claims that may arise under ADEA after
the Effective Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release Agreement is in addition to anything of value to which Employee was already entitled. Employee further acknowledges that he has been
advised by this writing that: 
  
 (a) he should
consult with an attorney prior to executing this Agreement; 
  
 (b) he has up to twenty-one (21) days within which to consider this Agreement; 
  
 (c) he has seven (7) days following his execution of this Agreement to revoke the Agreement; 
  
 (d) this Agreement will not be effective until the
revocation period has expired; and 
  
 (e)
nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless
specifically authorized by federal law. 
  
 8. Civil Code
Section 1542. Employee represents that he is not aware of any claim by him other than the claims that are released by this Agreement. Employee acknowledges that he has been advised by legal counsel and is familiar with the provisions of
California Civil Code Section 1542, which provides as follows: 
  
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM 

 MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  
 Employee, being aware of said code section, agrees to expressly waive any rights he may have
thereunder, as well as under any other statute or common law principles of similar effect. 
  
 9. No Pending or Future Lawsuits. Employee represents that he has no lawsuits, claims, or actions pending in his name, or on behalf of any other person or entity, against the Company or any other person or
entity referred to herein. Employee also represents that he does not intend to bring any claims on his own behalf or on behalf of any other person or entity against the Company or any other person or entity referred to herein. 
  
 10. Confidentiality. The Parties acknowledge that Employee’s
agreement to keep the terms and conditions of this Agreement confidential was a material factor on which all parties relied in entering into this Agreement. Employee hereto agrees to use his best efforts to maintain in confidence the existence of
this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Settlement Information”). Employee agrees to take every reasonable precaution to prevent
disclosure of any Settlement Information to third parties, and agrees that there will be no publicity, directly or indirectly, concerning any Settlement Information. Employee agrees to take every precaution to disclose Settlement Information only to
those attorneys, accountants, governmental entities, and family members who have a reasonable need to know of such Settlement Information. 
  
 11. No Cooperation. Employee agrees he will not act in any manner that might damage the business of the Company. Employee agrees that he will not
encourage, counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other
court order to do so. Employee will inform the Company in writing within three (3) days of receiving any such subpoena or other court order. 
  
 12. Non-Disparagement. Employee agrees to refrain from any defamation, libel or slander of the Releasees, and any tortious interference with the
contracts, relationships and prospective economic advantage of the Releasees. Employee agrees that he will direct all inquiries by potential future employers to Human Resources. The Company agrees that it and its executive officers will not
disparage and will refrain from any defamation, libel or slander of the Employee, and any tortious interference with the contracts, relationships and prospective economic advantage of the Employee. 
  
 13. Non-Solicitation. Employee agrees that for a period of twelve (12)
months immediately following the Effective Date of this Agreement, Employee will not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees or consultants to leave their employment, or attempt to do
so, either for himself or any other person or entity. 
  
 14.
Breach. Employee acknowledges and agrees that any breach of any provision of this Agreement will constitute a material breach of this Agreement and will entitle the Company 

 immediately to recover and/or cease the severance benefits provided to Employee under this Agreement. 
  
 15. No Admission of Liability. The Parties understand and acknowledge
that this Agreement constitutes a compromise and settlement of actual or potential disputed claims. No action taken by the Parties hereto, or either of them, either previously or in connection with this Agreement will be deemed or construed to be:

  
 (a) an admission of the truth or falsity of
any claims made or any potential claims; or 
  
 (b) an acknowledgment or admission by either party of any fault or liability whatsoever to the other party or to any third party. 
  
 16. Costs. The Parties will each bear their own costs, expert fees, attorneys’ fees and other fees incurred in connection with this Agreement,
except as provided herein. 
  
 17. Arbitration. The Parties
agree that any and all disputes arising out of the terms of this Agreement, their interpretation, and any of the matters herein released, will be subject to binding arbitration in Santa Clara County before the American Arbitration Association under
its National Rules for the Resolution of Employment Disputes or California Code of Civil Procedure. The Parties agree that the prevailing party in any arbitration will be entitled to injunctive relief in any court of competent jurisdiction to
enforce the arbitration award. The Parties agree that the prevailing party in any arbitration will be awarded its reasonable attorneys’ fees and costs. The Parties hereby agree to waive their right to have any dispute between them resolved
in a court of law by a judge or jury. This paragraph will not prevent either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the Parties and the subject matter of their dispute
relating to Employee’s obligations under this Agreement and the Confidentiality Agreement. 
  
 18. Tax Consequences. The Company makes no representations or warranties with respect to the tax consequences of the payment of any sums to
Employee under the terms of this Agreement. Employee agrees and understands that he is responsible for payment, if any, of local, state and/or federal taxes on the sums paid hereunder by the Company and any penalties or assessments thereon. Employee
further agrees to indemnify and hold the Company harmless from any claims, demands, deficiencies, penalties, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of
Employee’s failure to pay federal or state taxes or damages sustained by the Company by reason of any such claims, including reasonable attorneys’ fees. 
  
 19. Authority. The Company represents and warrants that the undersigned has the authority to act on behalf of the
Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that he has the capacity to act on his own behalf and on behalf of all who might claim through him to
bind them to the terms and conditions of this Agreement. Each party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

 20. No Representations. Each party represents that it has had the opportunity to consult with an
attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. In entering into this Agreement, neither party has relied upon any representations or statements made by the other party hereto which are not
specifically set forth in this Agreement. 
  
 21.
Severability. In the event that any provision, or any portion thereof, becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said
provision or portion of said provision. 
  
 22. Entire
Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement and Employee’s relationship with the Company, and supersedes and replaces any and
all prior agreements and understandings between the Parties concerning the subject matter of this Agreement and Employee’s relationship with the Company, with the exception of the Confidentiality Agreement, the Consulting Agreement, the Plan,
and, to the extent not amended hereby, the Option Agreements. 
  
 23. No Waiver. The failure of the Company to insist upon the performance of any of the terms and conditions in this Agreement, or the failure to prosecute any breach of any of the terms and conditions of this Agreement, will not be
construed thereafter as a waiver of any such terms or conditions. This entire Agreement will remain in full force and effect as if no such forbearance or failure of performance had occurred. 
  
 24. No Oral Modification. This Agreement may only be amended in a
writing signed by Employee and the Chief Executive Officer of the Company. 
  
 25. Governing Law. This Agreement will be construed, interpreted, governed, and enforced in accordance with the laws of the State of California, without regard to choice-of-law provisions. Employee hereby
consents to personal and exclusive jurisdiction and venue in the State of California. 
  
 26. Effective Date. This Agreement will become effective on the date that (i) it has been signed by both parties and (ii) eight (8) days have passed since Employee has signed it. 
  
 27. Counterparts. This Agreement may be executed in counterparts, and
each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned. 
  

28. Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims. The Parties acknowledge that: 
  
 (a) They have read this Agreement; 
  
 (b) They have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice or
that they have voluntarily declined to seek such counsel; 

 (c) They understand the terms and consequences of this Agreement and of the releases it
contains; and 
  
 (d) They are fully aware of the
legal and binding effect of this Agreement. 
  
 IN WITNESS
WHEREOF, the Parties have executed this Agreement on the respective dates set forth below. 
  

									
	 	 	 	 	 BRIAN MCDONALD

				
	Dated: 6/23/2004	 	 	 	By:	 	 /s/    Brian
McDonald        

	 	 	 	 	 	 	 	 	Brian McDonald
			
	 	 	 	 	 MONOLITHIC POWER SYSTEMS, INC.

				
	Dated: 6/23/2004	 	 	 	By:	 	 /s/    Michael
Hsing        

	 	 	 	 	 	 	 Name:
	 	Michael Hsing
	 	 	 	 	 	 	 Title:
	 	CEO

  

 EXHIBIT A 
  
 CONSULTING AGREEMENT 
  
 MONOLITHIC POWER SYSTEMS, INC. 
  
 CONSULTING AGREEMENT 
  
 This Consulting Agreement (“Agreement”) is effective as of June 22, 2004 by and between Monolithic Power Systems, Inc. (the
“Company”) and Brian McDonald (“Consultant”). The Company desires to retain Consultant as an independent contractor to perform consulting services for the Company, and Consultant is willing to perform such services,
on the terms described below. In consideration of the mutual promises contained herein, the parties agree as follows: 
  
 1. Services and Compensation. Consultant agrees to perform for the Company the services described in Exhibit A (the
“Services”), and the Company agrees to pay Consultant the compensation described in Exhibit A for Consultant’s performance of the Services. 
  
 2. Confidentiality. 
  
 A. Definition. “Confidential Information” means any non-public information that relates to the actual or
anticipated business or research and development of the Company, technical data, trade secrets or know-how, including, but not limited to, research, product plans or other information regarding Company’s products or services and markets
therefor, customer lists and customers (including, but not limited to, customers of the Company on whom Consultant called or with whom Consultant became acquainted during the term of this Agreement), software, developments, inventions, processes,
formulas, technology, designs, drawing, engineering, hardware configuration information, marketing, finances or other business information. Confidential Information does not include information that (i) is known to Consultant at the time of
disclosure to Consultant by the Company as evidenced by written records of Consultant, (ii) has become publicly known and made generally available through no wrongful act of Consultant or (iii) has been rightfully received by Consultant from a third
party who is authorized to make such disclosure. 
  
 B. Nonuse and Nondisclosure. Consultant will not, during or subsequent to the term of this Agreement, (i) use the Confidential Information for any purpose whatsoever other than the performance of the Services on behalf of the Company
or (ii) disclose the Confidential Information to any third party. Consultant agrees that all Confidential Information will remain the sole property of the Company. Consultant also agrees to take all reasonable precautions to prevent any unauthorized
disclosure of such Confidential Information. 
  
 C. Former Client Confidential Information. Consultant agrees that Consultant will not, during the term of this Agreement, improperly use or disclose any proprietary information or trade secrets of any former or current employer of
Consultant or other person or entity with which Consultant has an agreement or duty to keep in confidence information acquired by Consultant, if any. Consultant also agrees that Consultant will not bring onto the Company’s premises any
unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity. 

 D. Third Party Confidential Information. Consultant recognizes that the Company
has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited
purposes. Consultant agrees that, during the term of this Agreement and thereafter, Consultant owes the Company and such third parties a duty to hold all such confidential or proprietary information in the strictest confidence and not to disclose it
to any person, firm or corporation or to use it except as necessary in carrying out the Services for the Company consistent with the Company’s agreement with such third party. 
  
 E. Return of Materials. Upon the termination of this Agreement, or upon Company’s earlier
request, Consultant will deliver to the Company all of the Company’s property, including but not limited to all electronically stored information and passwords to access such property, or Confidential Information that Consultant may have in
Consultant’s possession or control. 
  
 3.
Ownership. 
  
 A.
Assignment. Consultant agrees that all copyrightable material, notes, records, drawings, designs, inventions, improvements, developments, discoveries and trade secrets conceived, discovered, developed or reduced to practice by Consultant,
solely or in collaboration with others, during the term of this Agreement that relate to the products, technology or research and development of the Company, that are created using any facilities, equipment, supplies or trade secret information of
Company or that are created in connection with performing the Services under this Agreement (collectively, “Inventions”), are the sole property of the Company. Consultant also agrees to assign (or cause to be assigned) and hereby
assigns fully to the Company all Inventions and any copyrights, patents, mask work rights or other intellectual property rights relating to all Inventions. 
  
 B. Further Assurances. Consultant agrees to assist Company, or its designee, at the Company’s expense, in every proper way to
secure the Company’s rights in Inventions and any copyrights, patents, mask work rights or other intellectual property rights relating to all Inventions in any and all countries, including the disclosure to the Company of all pertinent
information and data with respect to all Inventions, the execution of all applications, specifications, oaths, assignments and all other instruments that the Company may deem necessary in order to apply for and obtain such rights and in order to
assign and convey to the Company, its successors, assigns and nominees the sole and exclusive right, title and interest in and to all Inventions, and any copyrights, patents, mask work rights or other intellectual property rights relating to all
Inventions. Consultant also agrees that Consultant’s obligation to execute or cause to be executed any such instrument or papers shall continue after the termination of this Agreement. 
  
 C. Pre-Existing Materials. Subject to Section 3.A,
Consultant agrees that if, in the course of performing the Services, Consultant incorporates into any Invention developed under this Agreement any pre-existing invention, improvement, development, concept, discovery or other proprietary information
owned by Consultant or in which Consultant has an interest, (i) Consultant will inform Company, in writing before incorporating such invention, improvement, development, concept, discovery or other proprietary information into any Invention, and
(ii) the Company is 

 hereby granted a nonexclusive, royalty-free, perpetual, irrevocable, worldwide license to make, have
made, modify, use and sell such item as part of or in connection with such Invention. Consultant will not incorporate any invention, improvement, development, concept, discovery or other proprietary information owned by any third party into any
Invention without Company’s prior written permission. 
  
 D. Attorney-in-Fact. Consultant agrees that, if the Company is unable because of Consultant’s unavailability, dissolution, mental or physical incapacity, or for any other reason, to secure
Consultant’s signature for the purpose of applying for or pursuing any application for any United States or foreign patents or mask work or copyright registrations covering the Inventions assigned to the Company in Section 3.A, then Consultant
hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Consultant’s agent and attorney-in-fact, to act for and on Consultant’s behalf to execute and file any such applications and to do all
other lawfully permitted acts to further the prosecution and issuance of patents, copyright and mask work registrations with the same legal force and effect as if executed by Consultant. 
  
 4. Conflicting Obligations. 
  
 A. Conflicts. Consultant certifies that Consultant has no outstanding agreement or obligation that is
in conflict with any of the provisions of this Agreement or that would preclude Consultant from complying with the provisions of this Agreement. Consultant will not enter into any such conflicting agreement during the term of this Agreement. Subject
to the foregoing, Consultant is permitted to enter into any other employment or independent contracting relationships concurrent with this Agreement. Consultant’s violation of this Section 4.A will be considered a material breach under Section
6.B. 
  
 B. Substantially Similar Designs.
In view of Consultant’s access to the Company’s trade secrets and proprietary know-how, Consultant agrees that, if and to the extent that Consultant contributes to or has access to any semiconductor circuit or other product designs or
technology of Company, Consultant will not, without Company’s prior written approval, design identical or substantially similar semiconductor circuit or other product designs as those developed under this Agreement for any third party during
the term of this Agreement and for a period of twelve (12) months after the termination of this Agreement. Consultant acknowledges that the obligations in this Section 4 are ancillary to Consultant’s nondisclosure obligations under Section 2.

  
 5. Reports. Consultant also agrees that Consultant
will, from time to time during the term of this Agreement or any extension thereof, keep the Company advised as to Consultant’s progress in performing the Services under this Agreement. Consultant further agrees that Consultant will, as
requested by the Company, prepare written reports with respect to such progress. The Company and Consultant agree that the time required to prepare such written reports will be considered time devoted to the performance of the Services. 

 
 6. Term and Termination. 
  
 A. Term. The term of this Agreement will begin on
June 22, 2004 and will continue until the earlier of (i) September 24, 2004, or (ii) termination as provided in Section 6.B. 

 B. Termination. Either party may terminate this Agreement upon giving the other
party 14 days’ prior written notice of such termination pursuant to Section 11.E of this Agreement in the event that the other party is in breach of any material provision of this Agreement, which breach is not cured within such notice period.

  
 C. Survival. Upon such termination,
all rights and duties of the Company and Consultant toward each other shall cease except: 
  
 (1) The Company will pay, within 30 days after the effective date of termination, all amounts owing to Consultant for Services completed
and accepted by the Company prior to the termination date and related expenses, if any, submitted in accordance with the Company’s policies and in accordance with the provisions of Section 1 of this Agreement; and 
  
 (2) Section 2 (Confidentiality), Section 3 (Ownership),
Section 4 (Conflicting Obligations), Section 7 (Independent Contractor; Benefits), Section 8 (Indemnification), Section 9 (Nonsolicitation) and Section 10 (Arbitration and Equitable Relief) will survive termination of this Agreement. 
  
 7. Independent Contractor; Benefits. 
  
 A. Independent Contractor. It is the express
intention of the Company and Consultant that Consultant perform the Services as an independent contractor to the Company. Nothing in this Agreement shall in any way be construed to constitute Consultant as an agent, employee or representative of the
Company. Without limiting the generality of the foregoing, Consultant is not authorized to bind the Company to any liability or obligation or to represent that Consultant has any such authority. Consultant agrees to furnish (or reimburse the Company
for) all tools and materials necessary to accomplish this Agreement and shall incur all expenses associated with performance, except as expressly provided in Exhibit A. Consultant acknowledges and agrees that Consultant is obligated to report
as income all compensation received by Consultant pursuant to this Agreement. Consultant agrees to and acknowledges the obligation to pay all self-employment and other taxes on such income. 
  
 B. Benefits. The Company and Consultant agree that
Consultant will receive no Company-sponsored benefits from the Company. If Consultant is reclassified by a state or federal agency or court as Company’s employee, Consultant will become a reclassified employee and will receive no benefits from
the Company, except those mandated by state or federal law, even if by the terms of the Company’s benefit plans or programs of the Company in effect at the time of such reclassification, Consultant would otherwise be eligible for such benefits.

  
 8. Indemnification. Consultant agrees to indemnify and
hold harmless the Company and its directors, officers and employees from and against all taxes, losses, damages, liabilities, costs and expenses, including attorneys’ fees and other legal expenses, arising directly or indirectly from or in
connection with (i) any negligent, reckless or intentionally wrongful act of Consultant or Consultant’s assistants, employees or agents, (ii) any breach by the Consultant or Consultant’s assistants, employees or agents of any of the
covenants contained in this Agreement, (iii) any failure of Consultant to perform the Services in accordance with all applicable laws, rules and regulations, 

 or (iv) any violation or claimed violation of a third party’s rights resulting in whole or in part
from the Company’s use of the work product of Consultant under this Agreement. 
  
 9. Nonsolicitation. From the date of this Agreement until 12 months after the termination of this Agreement (the “Restricted Period”), Consultant will not, without the Company’s prior
written consent, directly or indirectly, solicit or encourage any employee or contractor of the Company or its affiliates to terminate employment with, or cease providing services to, the Company or its affiliates. During the Restricted Period,
Consultant will not, whether for Consultant’s own account or for the account of any other person, firm, corporation or other business organization, intentionally interfere with any person who is or during the period of Consultant’s
engagement by the Company was a partner, supplier, customer or client of the Company or its affiliates. 
  
 10. Arbitration and Equitable Relief. 
  
 A. Arbitration. Consultant agrees that any and all controversies, claims or disputes with anyone (including the Company and any
employee, officer, director, shareholder or benefit plan of the Company, in its capacity as such or otherwise) arising out of, relating to or resulting from Consultant’s performance of the Services under this Agreement or the termination of
this Agreement, including any breach of this Agreement, shall be subject to binding arbitration under the Arbitration Rules set forth in California Code of Civil Procedure Section 1280 through 1294.2, including Section 1283.05 (the
“Rules”) and pursuant to California law. CONSULTANT AGREES TO ARBITRATE, AND THEREBY AGREES TO WAIVE ANY RIGHT TO A TRIAL BY JURY WITH RESPECT TO, ALL DISPUTES ARISING FROM OR RELATED TO THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO:
ANY STATUTORY CLAIMS UNDER STATE OR FEDERAL LAW, CLAIMS UNDER TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE OLDER WORKERS BENEFIT PROTECTION ACT, THE
CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT, THE CALIFORNIA LABOR CODE, CLAIMS OF HARASSMENT, DISCRIMINATION OR WRONGFUL TERMINATION AND ANY STATUTORY CLAIMS. Consultant understands that this Agreement to arbitrate also applies to any disputes that
the Company may have with Consultant. 
  
 B.
Procedure. Consultant agrees that any arbitration will be administered by the American Arbitration Association (“AAA”), and that a neutral arbitrator will be selected in a manner consistent with its National Rules for the
Resolution of Employment Disputes. Consultant agrees that the arbitrator will have the power to decide any motions brought by any party to the arbitration, including discovery motions, motions for summary judgment and/or adjudication and motions to
dismiss and demurrers, prior to any arbitration hearing. Consultant agrees that the arbitrator will issue a written decision on the merits. Consultant also agrees that the arbitrator will have the power to award any remedies, including
attorneys’ fees and costs, available under applicable law. Consultant understands that the Company will pay for any administrative or hearing fees charged by the arbitrator or AAA, except that Consultant shall pay the first $200.00 of any
filing fees associated with any arbitration Consultant initiates. Consultant agrees that the arbitrator will administer and conduct any arbitration in a manner consistent with the Rules and that, to the extent that the AAA’s 

 National Rules for the Resolution of Employment Disputes conflict with the Rules, the Rules will take
precedence. 
  
 C. Remedy. Except as
provided by the Rules, arbitration will be the sole, exclusive and final remedy for any dispute between the Company and Consultant. Accordingly, except as provided for by the Rules, neither the Company nor Consultant will be permitted to pursue
court action regarding claims that are subject to arbitration. Notwithstanding the foregoing, the arbitrator will not have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator shall not order or require the
Company to adopt a policy not otherwise required by law which the Company has not adopted. 
  
 D. Availability of Injunctive Relief. In addition to the right under the Rules to petition the court for provisional relief,
Consultant agrees that any party may also petition the court for injunctive relief where either party alleges or claims a violation of Sections 2 (Confidentiality), 3 (Ownership) or 4 (Conflicting Obligations) of this Agreement or any other
agreement regarding trade secrets, confidential information, nonsolicitation or Labor Code §2870. In the event either the Company or Consultant seeks injunctive relief, the prevailing party will be entitled to recover reasonable costs and
attorneys’ fees. 
  
 E. Administrative
Relief. Consultant understands that this Agreement does not prohibit Consultant from pursuing an administrative claim with a local, state or federal administrative body such as the Department of Fair Employment and Housing, the Equal Employment
Opportunity Commission or the workers’ compensation board. This Agreement does, however, preclude Consultant from pursuing court action regarding any such claim. 
  
 F. Voluntary Nature of Agreement. Consultant acknowledges and agrees that Consultant is executing
this Agreement voluntarily and without any duress or undue influence by the Company or anyone else. Consultant further acknowledges and agrees that Consultant has carefully read this Agreement and has asked any questions needed to understand the
terms, consequences and binding effect of this Agreement and fully understand it, including that Consultant is waiving its right to a jury trial. Finally, Consultant agrees that Consultant has been provided an opportunity to seek the advice of an
attorney of its choice before signing this Agreement. 
  
 11.
Miscellaneous. 
  
 A. Governing
Law. This Agreement shall be governed by the laws of California without regard to California’s conflicts of law rules. 
  
 B. Assignability. Except as otherwise provided in this Agreement, Consultant may not sell, assign or delegate any rights or
obligations under this Agreement. 
  
 C.
Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior written and oral agreements between the parties regarding the subject matter
of this Agreement. 
  
 D. Headings.
Headings are used in this Agreement for reference only and shall not be considered when interpreting this Agreement. 

 E. Notices. Any notice or other communication required or permitted by this
Agreement to be given to a party shall be in writing and shall be deemed given if delivered personally or by commercial messenger or courier service, or mailed by U.S. registered or certified mail (return receipt requested), or sent via facsimile
(with receipt of confirmation of complete transmission) to the party at the party’s address or facsimile number written below or at such other address or facsimile number as the party may have previously specified by like notice. If by mail,
delivery shall be deemed effective 3 business days after mailing in accordance with this Section 11(E). 
  
 (1) If to the Company, to: 
 983 University Avenue, Building A 
 Los Gatos, CA 95032 
 Attention: Chief Executive Officer 
 Telephone: (408) 357-6600 
 Facsimile: (408) 357-6750 
  
 (2) If to Consultant, to the address for notice on the
signature page to this Agreement or, if no such address is provided, to the last address of Consultant provided by Consultant to the Company. 
  
 F. Attorneys’ Fees. In any court action at law or equity that is brought by one of the parties to this Agreement to enforce or
interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys’ fees, in addition to any other relief to which that party may be entitled. 
  
 G. Severability. If any provision of this Agreement is found to be illegal or unenforceable, the
other provisions shall remain effective and enforceable to the greatest extent permitted by law. 
  
 (Remainder of page intentionally left blank.) 

 IN WITNESS WHEREOF, the parties hereto have executed this Consulting Agreement effective as of the date
first set forth above. 
  

									
	 CONSULTANT
	 	 	 	 MONOLITHIC POWER SYSTEMS, INC.

					
	By:	 	/s/    Brian McDonald         	 	 	 	By:	 	/s/    Michael Hsing        
	 Name:
	 	 Brian McDonald
	 	 	 	 Name:
	 	 Michael Hsing

	 Title:
	 	 Self
	 	 	 	 Title:
	 	 CEO

  

			
	Address for Notice:
		
	 	 	Brian McDonald
	 	 	5821 Algonquin Way
	 	 	San Jose, CA 95138

 EXHIBIT A 
  
 Services and Compensation 
  
 1. Contact. Consultant’s principal Company contact: 
  

Name:  Michael
Hsing                                       
      
  
 Title:  CEO                                   
                          
  
 2. Services. The Services consist of the following: 
  
 Consultant will provide consulting and advisory services relating to financial and accounting matters and to projects or work in process that had been
within the Consultant’s areas of responsibility while he served as Chief Financial Officer of the Company, including such appropriate tasks as the Company’s Board of Directors (the “Board”) may request as necessary and
appropriate to assist Timothy Christoffersen transition into the position of the Company’s Chief Financial Officer. Consultant will not be required to provide more than one work day (eight hours) per calendar week in services under this
Agreement, except as mutually agreed by Consultant and the Company. 
  
 3. Compensation. 
  
 A. The
Company will pay Consultant $60.00 per hour for every hour of service actually performed under this Agreement. 
  
 B. The Company will reimburse Consultant for all reasonable expenses incurred by Consultant in performing the Services pursuant to this
Agreement, if Consultant receives written consent from an authorized agent of the Company prior to incurring such expenses and submits receipts for such expenses to the Company in accordance with Company policy. 
  
 Every two weeks, Consultant shall submit to the Company a written invoice for
Services and expenses, and such statement shall be subject to the approval of the contact person listed above or other designated agent of the Company. 
  
 Effective as of June 22, 2004 
  

									
	 CONSULTANT
	 	 	 	 MONOLITHIC POWER SYSTEMS, INC.

					
	By:	 	/s/    Brian McDonald        	 	 	 	By:	 	/s/    Michael Hsing     
	 Name:
	 	 Brian McDonald
	 	 	 	 Name:
	 	 Michael Hsing

	 Title:
	 	 Self
	 	 	 	 Title:
	 	 CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]