Document:

Investment and Cooperation Contract

 Exhibit 10.13 
  
 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 OMITTED INFORMATION HAS BEEN REPLACED BY “[*]”. 

 
 Investment and Cooperation Contract 
  
 This Investment and Cooperation Contract (hereinafter “Contract”) is entered into
by and between the following two parties: 
  

	(1)	The Management Committee of Chengdu Hi-Tech Industrial Development Zone (hereinafter “Committee”); and 

  

	(2)	Monolithic Power Systems Inc. (hereinafter “MPS”), a company duly established and existing under the laws of the State of California, United States of America.

  
 WHEREAS, MPS intends to establish a wholly foreign owned
enterprise (hereinafter “Company”) in the State-Council approved Export Processing Zone of Chengdu Hi-Tech Industrial Development Zone (hereinafter “Hi-tech Zone”), to engage in IC design, R&D, manufacturing and sale;

  
 WHEREAS, the Committee fully supports MPS’ investment plans, and
the Committee and MPS signed on July 9, 2004 a Preliminary Agreement for Investment and Cooperation (hereinafter “Preliminary Agreement”) to set forth the major terms and conditions to the MPS’ investment; 
  
 WHEREAS, based on the friendly negotiations and discussions, the parties agreed to set
forth in this Contract the detailed terms and conditions to MPS’ investment and the parties’ rights and obligations. 
  
 NOW, THEREFORE, the parties agree as follows: 
  

	1.	ESTABLISHMENT OF THE COMPANY 

  

	1.1	The Company will be established as an independent legal entity in the form of limited liability company under the laws of the PRC. The Company shall be liable to any third party
(including government authorities) only to the extent of the Company’s own assets. MPS shall have no liability for any losses, debts, liabilities or other obligations of the Company beyond its contribution to the Company’s Registered
Capital (as defined below). 

  

	1.2	The Company will have a total investment of approximately twelve million US dollars (USD12,000,000) (hereinafter “Total Investment”), of which five million US dollars
(USD5,000,000) will be the registered capital to be contributed by MPS (hereinafter “Registered Capital”). The specific amount of the Company’s Total Investment and Registered Capital will be stipulated in the articles of association
of the Company (hereinafter “AA”). 

	1.3	Notwithstanding any other provisions herein, the difference between the Registered Capital and the Total investment may, at the sole discretion of the Company, be financed by the
Company through bank or shareholder’s loans or other debt financing. In any event, neither the Company nor MPS shall have any obligation whatsoever to make up such difference with further capital contribution or by any other means.

  

	1.4	The Registered Capital shall be contributed by MPS in the form of cash, equipment and/or intellectual property rights, as specified in the AA. 

  

	1.5	Of the initial installment of the Registered Capital (USD750,000) three hundred thousand US dollars (USD300,000) shall be contributed by MPS within three (3) months after the
Establishment Date (as defined below). The contribution schedule of the remaining four hundred fifty thousand US dollars (USD450,000) may be extended for another nine (9) months upon MPS’ application, and the Committee shall ensure to secure,
on behalf of MPS, the necessary government approvals required for such extension. The balance of the Registered Capital of USD4,250,000, will be contributed within three (3) years after the Establishment Date. 

  

	1.6	MPS shall have no obligation to contribute the Registered Capital unless and until: 

  

	 	(1)	the execution of this Contract, the Land Use Rights Purchase Contract, the Factory Lease and Purchase Agreement, the Utilities Service Contracts, all as defined below, in a form and
substance satisfactory to MPS and/or the Company; 

  

	 	(2)	the legal establishment of the Company and the issuance of its Business License; 

  

	 	(3)	the Company is certified as “Encouraged Foreign Investment Project”; and 

  

	 	(4)	the satisfaction of other conditions as may be specified in the AA. 

  

	1.7	The Company name shall be determined by MPS in accordance with relevant PRC laws and regulations and be specified in the AA. 

  

	1.8	The Company shall be established for a term of fifty (50) years, subject to extension at the sole discretion of the Company’s Board of Directors. The extension shall be
approved by the Approval Authority upon the application of the Company six (6) months prior to the expiration of operation period. 

  

	1.9	The Company may, depending on its business requirements, establish branches or business offices inside and/or outside of the PRC in accordance with relevant PRC law.

  

	1.10	The Company shall, in accordance with the relevant PRC laws and regulations, enter into labor contracts with both Chinese and expatriate employees. The Committee shall assist the
Company in recruiting and training employees as required by the Company. 

  

	1.11	The Committee shall support the Company to secure all legally required approvals, licenses, permits and certifications for the establishment and operation of the Company.

  

	1.12	The date on which all of the following conditions have been satisfied shall be deemed the date of establishment of the Company (hereinafter “Establishment Date”):

  

	 	(1)	The Ministry of Commerce or its authorized local agent (hereinafter “Approval Authority”) issues an Approval Letter and Approval Certificate approving the Company’s
AA and the establishment of the Company; and 

  

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	 	(2)	The relevant bureau of the Administration of Industry and Commerce issues a Business License for the Company reflecting the major terms and conditions contained in the AA.

  

	2.	LAND USE RIGHTS 

  

	2.1	The Committee shall arrange to have the local land authority in the Hi-tech Zone (hereinafter “Land Authority”) sign a state-owned land use rights purchase contract
(hereinafter “Land Use Rights Purchase Contract”) with the Company pursuant to which: 

  

	 	(1)	A plot of land with an area of [*] (hereinafter “Land”) in the Hi-tech Zone, and at proximity to [*] project (the map of the Land attached hereto as Exhibit A)
shall be provided for the Company’s use; 

  

	 	(2)	The Company will acquire the granted land use rights to the Land and will use [*] of the Land for its initial operation. If the Company decides not to use the remaining [*] of the
Land within two (2) years after the commencement of the Company’s operation, the Company shall return the [*] of the Land to the Committee. The Committee shall fully refund or otherwise reimburse the Company the land use rights purchase fees
paid by the Company for such [*] of the Land; 

  

	 	(3)	The term of the land use rights for the Land shall be fifty (50) years, from the execution date of the Land Use Rights Purchase Contract, subject to extension;

  

	 	(4)	The land use rights granted to the Company shall have the legal status of “granted land use rights” under relevant PRC laws and regulations, and may be legally
transferred, mortgaged, leased or otherwise disposed of by the Company, subject to any applicable legal requirements or restrictions; 

  

	 	(5)	The designated use for the Land shall be: industrial use land; 

  

	 	(6)	The land use rights purchase fee for the net area of the Land shall be [*] per mu, which includes the land grant fee but excludes the deed tax (hereinafter “Land Use Rights
Purchase Fee”). The difference between this purchase fee and the standard land purchase fee will be compensation by the committee. 

  

	 	(7)	The Land Use Rights Purchase Contract shall become legally effective on the date on which all the following conditions are satisfied (hereinafter “Land Contract Effective
Date”): 

  

	 	(i)	The Land Use Rights Purchase Contract has been pre-signed, signed and endorsed in accordance with the terms therein; 

  

	 	(ii)	This Contract has become legally effective in accordance with the relevant terms therein; 

  

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	 	(iii)	The Land Use Rights Purchase Contract has been approved by MPS’ Board of Directors; 

  

	 	(iv)	The final area for the Land has been determined in accordance with the terms of the Land Use Rights Purchase Contract; 

  

	 	(v)	All of the conditions for the Establishment Date set out in Article 1.12 of this Contract have been fully satisfied. 

  

	 	(8)	The Land Use Rights Purchase Fee shall be paid in full within ninety (90) days of the Land Contract Effective Date; 

  

	 	(9)	The Company shall not be required to pay any land use fees, taxes or other charges in connection with the Land except for the Land Use Rights Purchase Fee and the deed tax of 3% of
the Land Use Rights Purchase Fee; 

  

	 	(10)	The Land Authority shall make representations and warranties in respect of the Land as set out in Exhibit B; 

  

	 	(11)	The Land Authority shall indemnify and hold harmless the Company and MPS against any losses, damages, liabilities or expenses sustained, assumed or incurred by the Company and/or
MPS as a result of any breach by the Land Authority of the Land Use Rights Purchase Contract, and Pre-Handover Liabilities (as such term is defined in the Land Use Rights Purchase Contract), or any third party claims (including government actions or
claims for taxes, fees or charges in respect of the Land in excess of the Land Use Rights Purchase Fee) against the Company and/or MPS with regard to the Company’s possession, control or use of the Land; 

  

	 	(12)	The Land Use Rights Purchase Contract shall be governed by the laws of the PRC, with disputes between MPS/the Company and the Land Authority to be submitted to the China
International Economic and Trade Arbitration Commission (“CIETAC”) in Beijing for arbitration in accordance with CIETAC’s rules. 

  

	2.2	If the total investment from MPS and/or the Company in the Hi-tech Zone reaches [*] within five (5) years after the Establishment Date, the Committee agrees to fully refund or
otherwise reimburse the Company the total Land Use Rights Purchase Fee paid by the Company for the Land. 

  

	2.3	The Committee shall secure the relevant granted land use certificate accurately reflecting the relevant terms of the Land Use Rights Purchase Contract within ninety (90) days of the
Land Contract Effective Date. 

  

	3.	FACTORY FACILITIES 

  

	3.1	The Committee shall construct, according to MPS’ standards, technical requirements and national and local laws and regulations, a factory facility and ancillary facilities
(hereinafter “Factory Facility”) of approximately [*] on [*] of the Land, of which [*] shall be testing workshop, warehouse and laboratory, and [*] shall be office space. 

  

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	3.2	The parties agree to use their best efforts to keep the construction cost of the Factory Facility under [*] per square meter, such construction cost shall be approved by both
parties, before commencement of construction, based on estimates made by an evaluation agent jointly retained by the parties. Upon completion of the construction, the actual construction cost shall be verified and determined by an evaluation agent
jointly retained by the parties or retained independently by MPS/Company at their sole discretion, subject to the parties’ confirmation. The cost for retaining the service of such evaluation agent(s) shall be borne by the Committee, unless the
agent(s) is retained by MPS or the Company independently, in which case, MPS or the Company will pay for the services. 

  

	3.3	A factory construction, lease and purchase agreement (hereinafter “Factory Lease and Purchase Agreement”) shall be executed by the Company and the Committee, pursuant to
which: 

  

	 	(1)	The Committee shall complete the construction of the Factory Facility and deliver it for the Company’s use within six (6) months after the Company pays the Land Use Rights
Purchase Fee to the Committee and/or the Land Authority, in compliance with the designs and requirements provided by the Company/MPS and subject to the Company’s consent to the final design proposal and the Company’s final inspection and
acceptance of the Factory Facility; 

  

	 	(2)	For five (5) years after completion of the Factory Facility, the Company shall lease the Factory Facility from the Committee at [*] per square meter per month, with the rental to be
paid by the Company quarterly; 

  

	 	(3)	After the fifth year, the Company shall purchase the Factory Facility at its actual construction cost, as determined according to Article 3.2 of this Agreement. The Committee shall
use its best efforts to obtain all tax and non-tax benefits, subsidies and concessions that the Committee and/or the Company may be entitled to with respect to the construction of the Factory Facility; 

  

	 	(4)	The accumulated rental paid by the Company for the Factory Facility shall be deducted from the purchase price of the Factory Facility; 

  

	 	(5)	The Committee shall be responsible for obtaining on behalf of the Company the title certificate under the name of the Company for the Factory Facility duly issued by the relevant
real estate authority no later than ninety (90) days after the completion date of the Factory Facility. The Committee shall provide a copy of such title certificate to the Company within ten (10) days after obtaining such title certificate and
deliver the original copy of the title certificate to the Company once the Company exercises its right to purchase the Factory Facility; 

  

	 	(6)	The Committee shall ensure that the Company’s right to use the Factory Facility is not disturbed by any rights or claims of any third party during the entire term of the
Company; 

  

	 	(7)	Without prior written consent of the Company, the Committee is not allowed to create any mortgage, pledge, lien or other encumbrances on the Factory Facility or seek to sell the
Factory Facility to any third party. The Committee shall ensure that the Company will acquire clean titles to the Factory Facility free from any mortgage, 

  

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 pledge, lien, encumbrances, environmental liabilities, historic liabilities at the time when the Company
exercises its right to purchase the Factory Facility, except for those liabilities caused by the Company’s sole action or negligence. 
  

	 	(8)	The title to the Factory Facility will be transferred to the Committee if the Company does not purchase the Factory Facility according to Article 3.3 (3) of this Contract, provided
that the Land Use Rights Purchase Fee for the Land is fully refunded or otherwise reimbursed to the Company by the Committee. The Company, however, should still have the right to lease the Factory Facility. 

  

	3.4	For the avoidance of doubt, the Land Use Rights Purchase Fee for the Land, the rental and the purchase price of the Factory Facility will be paid by the Company out of the
Company’s registered capital. 

  

	4.	TAX AND BENEFITS 

  

	4.1	The Committee will ensure that the Company enjoys the following tax benefits: 

  

	 	(1)	enterprise income tax will be imposed at a base rate of [*], provided that the Company will enjoy an exemption from enterprise income tax for [*] starting from the Company’s
first “profit-making year” and, for the following [*], the Company shall pay enterprise income tax at a reduced rate of [*]; 

  

	 	(2)	the Company will be exempt from local income tax and any administrative charges (excluding the enterprise income tax defined in Article 4.1(1) above) during the entire term of the
Company; 

  

	 	(3)	the Company shall pay enterprise income tax at a reduced rate of [*] for the [*] in which the export of the Company reaches [*] of its annual output; 

  

	 	(4)	the Company shall be entitled to import manufacturing equipment and materials, at values up to the Total Investment of the Company and/or as otherwise permitted by the applicable
laws and regulations, free of customs duties and import VAT; 

  

	 	(5)	the Company shall be entitled to enjoy the VAT, enterprise income tax and other tax reduction, exemption and refund granted specifically under the national and local laws and rules
to the IC manufacturing and R&D enterprises; 

  

	 	(6)	the Company shall be entitled to enjoy other reductions, exemptions and referential tax benefits granted under national and local laws and rules, and those otherwise enjoyed by any
other enterprises in the Hi-tech Zone. 

  

	4.2	Within five (5) years after the Establishment Date, the Committee agrees to reimburse the relevant individuals the portion of the individual income tax paid by the Company’s
expatriate experts and senior management personnel and retained by the Hi-tech Zone; provided that the number of such experts/personnel shall not exceed [*] of the total number of employees of the Company, and the annual salaries of each of such
experts/personnel shall be no less than [*]. 

  

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	4.3	Within ten (10) years after the Establishment Date, the Company shall not be required to pay the statutory social insurance for its employees exceeding those required in the
following chart (based on the base salary of the Company’s employees) and shall have the option to pay these social insurance at the rates which meet the minimum requirements of the applicable laws and regulations during the term of the
Company: 

  

					
	 	  	Rates Payable by the
Company

	 	Rates Payable by the
Company’s Employees

	 Pension Fund
	  	[*]	 	[*]
	 Medical Insurance
	  	[*]	 	[*]
	 Unemployment Insurance
	  	[*]	 	[*]
	 Occupational Injuries Insurance
	  	[*]	 	[*]
	 Maternity Insurance
	  	[*]	 	[*]
	 Housing Fund
	  	[*]	 	[*]
	 Total
	  	[*]	 	[*]

  

	4.4	The Committee shall use its best efforts to assist the Company/MPS to apply for and obtain the maximum benefit of all permitted reductions in, or exemptions from, PRC taxes,
including benefits accorded to certified “High and New Technology Enterprises”, exemptions from VAT and customs duties for imported equipment, materials and technology, and exemptions from withholding and business tax for royalty payments
on technology transferred and/or technical assistance provided to the Company. 

  

	4.5	The Committee shall ensure that neither MPS nor Company is penalized for relying on and implementing the terms of this Article 4. 

  

	4.6	The Committee represents and warrants that it has the legal authority to secure the above detailed preferential tax benefits. 

  

	4.7	The Committee acknowledges that in evaluating the feasibility of investing in the Hi-tech Zone, MPS has relied on the Committee’s assurances that the Company will enjoy the
benefits detailed in this Article 4. 

  

	5.	UTILITIES & SERVICES 

  

	5.1	To satisfy the Company’s needs for a reliable supply of and access to electricity, gas and water, etc., the Committee agrees to assist in signing the relevant utilities and
service contracts (“Utilities Service Contracts”) by the relevant utilities/services suppliers and the Company (or MPS, acting on the Company’s behalf) for the procurement and management of such utilities and services, pursuant to
which: 

  

	 	(1)	The Company shall notify the Committee in writing sixty (60) days in advance of the date(s) on which it requires the various services and utilities detailed in item (2) below to be
first available to the Land, setting out in such notice details regarding the Company’s anticipated usage requirements (the “Notice”); 

  

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	 	(2)	The Committee shall ensure that the following utilities are available to meet the request of the Company: 

  

	 	(i)	water pipeline(s) sufficient to accept/supply the anticipated quantity of water produced/required by the Company; 

  

	 	(ii)	adequate phone lines, including IDD lines, to support the Company’s business operations and administration: 

  

	 	(iii)	electric power sufficient for the Company’s operations; 

  

	 	(iv)	gas supplies sufficient for the Company’s operations. 

  

	 	(3)	The Committee shall use its best efforts to ensure that the Company’s needs for utilities and services in addition to those detailed in item (2) above are satisfied:

  

	 	(4)	The Company shall enjoy uninterrupted access to the various utilities and services throughout the entire term of the Company; 

  

	 	(5)	The fees charged to the Company for the various utilities and services shall not be higher than fees for the same or comparable utilities and services charged to any other
enterprise in the Hi-tech Zone; 

  

	 	(6)	The supply of water, gas, electricity and other utilities shall be provided in accordance with the following terms: 

  

	 	(i)	Term: At least fifty (50) years. 

  

	 	(ii)	Connections & Maintenance: The Company shall not, unless otherwise stipulated in the Utilities Service Contracts, bear the cost of any utility connections or maintenance
of the pipelines and utilities infrastructure. Connections for the utilities shall be made at the boundary limits of the Land at specific locations designated in the Utilities Service Contracts or otherwise reasonably designated in writing by the
Company. 

  

	 	(iii)	No Minimum Fees or Increased Capacity Charges: Unless otherwise provided in the Utilities Service Contracts, the Company shall not be subject to any minimum purchase
requirements nor shall it be subject to any increased capacity fees or charges. 

  

	 	(iv)	Pricing: According to the price published by the relevant government authorities. 

  

	 	(v)	Billing & Payments: The suppliers shall issue monthly invoices based on the actual utilities/services provided to the Company in accordance with the terms of the
Utilities Service Contracts. Payment terms shall be detailed in the Utilities Service Contracts. 

  

	 	(vi)	Measuring Devices: The Company and the relevant utility suppliers shall, at their respective cost and pursuant to agreed-upon technical specifications

  

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 and industry metering requirements, install metering equipment at locations specified in the Utilities
Service Contracts. Terms regarding calibration, precision levels and meter reading shall also be set out in the Utilities Service Contracts. 
  

	 	(vii)	Delivery & Risk of Loss: The utility suppliers shall provide utilities strictly in accordance with the specifications set out in the Utilities Service Contracts and shall
bear all losses, damages, etc, for any breach of such supply obligations. Delivery points shall be specified in the Utilities Service Contracts, with ownership and risk of loss passing to the Company at such specified points.

  

	 	(viii)	Interruptions & Maintenance: The utilities suppliers and the Company will consult with each other to plan maintenance stops and procedures, using all reasonable
endeavours to minimize disruptions and/or interruptions in the supply and off-take of utilities. Long and short-term maintenance plans and schedules of anticipated shut-downs and interruptions shall be prepared and discussed by the parties in
accordance with the Utilities Service Contracts. 

  

	 	(ix)	Governing Law & Dispute Resolution: The Utilities Service Contracts shall be governed by PRC law, with disputes between MPS/Company and the Committee with respect to the
provision of the utilities and services to be referred to CIETAC in Beijing for arbitration. 

  

	 	(7)	The discharge of waste and pollutants by the Company shall be in compliance with relevant provisions of PRC laws and regulations in connection with environmental protection:

  

	 	(8)	The Committee shall ensure that the Land is, for the duration of the term of the Company, accessible by road, and the roads around the Land have suitable load-bearing capacity for
the transportation of required equipment and materials to and from the Land; 

  

	 	(i)	The Committee shall be responsible for levelling the Land to meet the requirements of Factory Facilities construction without any charge or expense to the Company.

  

	6.	GOVERNING LAW AND DISPUTE RESOLUTION 

  

	6.1	This Contract shall be governed by and construed in accordance with the laws of the PRC. 

  

	6.2	The parties shall strive to settle any dispute or claim arising from the interpretation or performance of this Contract through friendly consultations. In case no settlement can be
reached through consultations within sixty (60) days of the submission of notice of such matter by a party to the other party, then such matter shall be submitted to the CIETAC in Beijing for arbitration in accordance with its then applicable rules.

  

	6.3	The parties confirm that this Contract is a commercial contract, negotiated and concluded on a voluntary and equal basis, creating civil obligations and liabilities on all parties
and authorities related to this Contract. The Committee also confirms that the execution and 

  

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 performance of this Contract is a commercial, rather than a governmental or administrative, act. The
Committee and all authorities relevant to this Contract further confirm that they do not have any claim of immunity or similar claim whatsoever. 
  

	7.	EFFECTIVE DATE & TERMINATION 

  

	7.1	This Contract shall become legally effective once signed by the Committee and MPS, (such date shall be referred to herein as the “Effective Date”). This Contract is a
legally binding obligation of each party. 

  

	7.2	Within ninety (90) days after the execution of this Contract, the Committee shall make sure to: 

  

	 	(1)	assist the Company in applying for and obtaining the Approval Letter and Approval Certificate for the Company’s establishment and the Business License of the Company and all
other licenses, permits, approvals, certifications or endorsements necessary for the Company’s legal establishment and operation; 

  

	 	(2)	cause the relevant parties/authorities to sign with the Company the Land Use Rights Purchase Contract, Factory Lease and Purchase Agreement, Utilities Service Contracts and other
legal documents and agreements necessary for the Company’s operation, to the satisfaction of MPS/the Company; 

  

	 	(3)	cause the relevant authorities to certify and confirm the designs of the Factory Facility as supplied by MPS and/or the Company and accepted by the Committee.

  

	7.3	Within one (1) month after the Establishment Date, the Committee shall ensure to obtain from the relevant approval authority the certification confirming the Company as a
“Encouraged Foreign Investment Project”. The Committee ensures that the Company would be certified as a High and New Technology Enterprise after the Company commences its operation. 

  

	7.4	This Contract shall remain in effect, from the Effective Date, for the full term of the Company unless terminated earlier in accordance with this Article 7.4. This Contract may be
terminated by the Company or MPS if: 

  

	 	(1)	any matter set forth in Article 7.2 has not be fulfilled within the time period as specified in Article 7.2 or any extension thereof agreed to by the parties; or

  

	 	(2)	this Contract, the Facility Lease and Purchase Agreement, the Land Use Rights Purchase Contract or the Utilities Service Contracts is materially breached by the Committee, the Land
Authority or the relevant utilities and service suppliers, as the case may be, and such breach is not remedied within thirty (30) days after notification from MPS or the Company. 

  

	7.5	The Committee shall indemnify and hold the Company and MPS harmless against any losses, damages, liabilities or expenses sustained, assumed or incurred by the Company and/or MPS as
a result of any breach by the Committee of this Contract and the Facility Lease and Purchase Agreement. 

  

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	7.6	If, during the performance of this Contract, any circumstance that is reasonably unpredictable and unavoidable by both parties when signing this Contract and that prevents the
performance of this Contract occurs, and neither party is liable for the occurrence of such events, then either Party may delay the performance of part or all of its obligations under this Contract, or terminate this Contract without liabilities on
the part of either Party. 

  

	8.	MISCELLANEOUS 

  

	8.1	Each party agrees to hold in confidence and not disclose or permit to be disclosed to any third party without the prior written consent of the other party (unless expressly
permitted herein or required to be filed or disclosed to the public by either the United States Securities and Exchange Commission or by the applicable law) the terms of this Contract, or any technical or other confidential information which one
party might disclose to the other party in the course of discussions regarding this Contract and the establishment of the Company. 

  

	8.2	The Committee shall ensure that the Company is entitled to enjoy any and all beneficial treatments granted to and enjoyed by any other entity in the Hi-tech Zone.

  

	8.3	MPS is entitled to transfer or assign its rights and obligations under this Contract to one of its wholly owned subsidiaries. The Committee hereby specifically agrees to such
transfer or assignment, and confirms that no further consent, in whatever form, from the Committee is required for such transfer or assignment by MPS. 

  

	8.4	The Exhibits attached hereto are an integral part of this Contract 

  

	8.5	This Contract and its Exhibits constitute the entire agreement between the parties relating to the subject matter hereof and supersede any previous written or oral agreements or
memoranda related hereto, including without limitation the Memorandum of Understanding and the Preliminary Agreement for Investment and Cooperation signed by the parties on April 13, 2004 and July 9, 2004 respectively. 

  

	8.6	All notices or other communications under this Contract shall be in writing (including telegram or facsimile) and shall be delivered or sent to the correspondence addresses or
facsimile numbers of the Parties as set forth below or to such other addresses and facsimile numbers as shall be notified to all Parties in writing by any Party. 

  
 MPS/Company: 
  
 Attn: Deming Xiao 
 Tel:
408-395-2802-45 
 Fax: 408-395-2812 
  

Committee: 
  
 Attn: Gang Li 
 Tel:
86-28-85178684 
 Fax: 86-28-85176329 
  

	8.7	This Contract shall be executed in both English and Chinese versions. Both versions shall have equal validity. 

  

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	8.8	This Contract shall be executed in four (4) counterparts with each party retaining two (2) counterpart. 

  
 IN WITNESS THEREOF, this Investment and Cooperation Contract has been duly signed by the authorized representatives of each party on this
19th day of August, 2004. 
  
 The Management Committee of Chengdu Hi-Tech
Industrial Development Zone 
  

			
	 Signature:  /s/ Jing Gang

	
	 Printed Name:  Jing Gang

	
	 Position:  Director, The Management Committee of the Chengdu Hi-tech Zone

	
	 Official Seal:

  
 Monolithic Power Systems Inc.

  

			
	 Signature:
	 	 
		
	 Printed Name:  Deming Xiao
	 	/s/ Deming Xiao
		
	 Position:  Vice President of Operations, MPS
	 	 

  

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 Exhibit A 
  
 Bluelined Land Map 
  
 [map] 

 Exhibit B 
  
 Representations and Warranties 
 to be Included in the Land Use Rights Purchase Contract 
  
 The Land Authority represents and warrants as of the date the Land Use Rights Purchase Contract is executed, and as of the Grant Date, as such term is defined in the Land Use Rights Purchase Contract, that:

  

	(1)	The granted land use rights in respect of the Land can be legally granted to the Company; 

  

	(2)	The execution and performance by the Land Authority of the Land Use Rights Purchase Contract: (i) is within its respective authority and power; and (ii) does not contravene any law
or contractual restriction binding on or affecting it; 

  

	(3)	As of the Grant Date, the Company shall enjoy granted land use rights of the Land, free and clear of any liens, mortgages, or other security interests or encumbrances, including,
without limitation, claims by any government agency; 

  

	(4)	The Land Use Rights Purchase Contract is a legal, valid and binding obligation of the Land Authority, fully enforceable in accordance with its terms; 

  

	(5)	The Land is free from environmental hazards and contamination of any nature, and is in full compliance with applicable PRC laws and regulations, including, without limitation,
relevant environmental laws and regulations related to emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals, toxic or hazardous substances or wastes; 

  

	(6)	There is no lawsuit, arbitration, or legal, administrative or other proceeding or governmental investigation pending or, to the best knowledge of the Land Authority, threatened in
respect of the Land.Patent License Agreement

 Exhibit 10.14 
  
 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 “[*]”. 

 
 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	WITNESSETH	  	1
			
	Section 1.	 	DEFINITIONS	  	1
			
	Section 2.	 	GRANTS OF LICENSES	  	2
			
	Section 3.	 	ROYALTY FEE	  	4
			
	Section 4.	 	PAYMENTS, REPORTS, RECORDS AND TAX	  	4
			
	Section 5.	 	ACCOUNTING AND AUDIT	  	6
			
	Section 6.	 	TERM AND TERMINATION	  	6
			
	Section 7.	 	CONFIDENTIALITY	  	9
			
	Section 8.	 	DISCLAIMER	  	11
			
	Section 9.	 	PROPRIETARY RIGHTS	  	12
			
	Section 10.	 	MISCELLANEOUS	  	12

 PATENT LICENSE AGREEMENT 
  
 THIS PATENT LICENSE AGREEMENT (hereinafter referred to as “AGREEMENT”), effective as of May 1, 2004 (hereinafter referred to as
“EFFECTIVE DATE”) is made and entered into by and between Monolithic Power Systems, Inc., a California corporation (hereinafter referred to as “MPS”), having its principal office No. 983 University Ave., Building D, Los Gatos, CA
95032, U.S.A., and Beyond Innovation Technology Co., Ltd., a corporation of the Republic of China, having its principal office at 5F, No. 136, Sec. 3, Nanjing E. Road, Taipei, Taiwan, R.O.C. (hereinafter referred to as “BiTEK”).

  
 WITNESSETH 
  
 WHEREAS, MPS owns patents in certain countries of the world with respect to LICENSED
PRODUCTS (defined below); 
  
 WHEREAS, BiTEK also owns patents in relation to
LICENSED PRODUCTS, 
  
 WHEREAS, in order to minimize and remove future patent
disputes between parties, the parties hence desire to enter into this AGREEMENT under which MPS is willing to grant license to BiTEK and BiTEK is willing to accept license from MPS. 
  
 NOW THEREFORE, in consideration of the mutual covenants and premises contained herein, the parties hereto agree as follows: 
  
 Section 1. DEFINITIONS 
  

	1.1	“AUTHORIZED COMPANY” shall mean a company authorized by BiTEK to have made and sell LICENSED PRODUCTS by using patents, know-how and designs granted by BiTEK, and that has
been approved for sublicense by MPS in accordance with Section 2.2 and sublicensed by LICENSEE in accordance with Section 2.3. 

  

	1.2	“LICENSED PRODUCTS” shall mean LICENSEE’s LCD CCFL Back Light Controller products (hereinafter referred to as “CCFL Driver”) listed in Exhibit A attached
hereto and conforming to the corresponding data sheets included in Exhibit A attached hereto, as such products exist on the EFFECTIVE DATE, without modification. 

  

 -1- 

	1.3	“LICENSED PATENTS” shall mean the patents listed in Exhibit B attached hereto. 

  

	1.4	“LICENSEE” shall mean BiTEK. 

  

	1.5	“AFFILIATES” shall mean any corporation, company or other entity that controls or is controlled by LICENSEE. For the purposes of this definition, the term
“control” means the ownership or beneficial ownership of more than fifty percent (50%) of the voting stock or other similar interests of, a corporation or other business organization with voting shares, or a greater than fifty percent
(50%) interest in the net assets or profits of a partnership or other business organization without voting shares. 

  

	1.6	“LICENSED AFFILIATE” means an AFFILIATE that has been approved for sublicense by MPS in accordance with Section 2.2 and sublicensed by LICENSEE in accordance with Section
2.3. 

  
 Section 2. GRANTS OF LICENSES 
  

	2.1	In consideration of the license fee payments the LICENSEE made in accordance with Section 3 hereunder, MPS hereby agrees to grant LICENSEE a non-exclusive, non-assignable,
non-transferable, indivisible, world-wide and royalty bearing license under the LICENSED PATENTS to make, have made, use, lease, sell, offer to sell, import or otherwise dispose of units of the LICENSED PRODUCTS for which royalties have been paid
pursuant to Sections 3 and 4 of the AGREEMENT, sold directly or through the AUTHORIZED COMPANIES, and provided that such LICENSED PRODUCTS are branded, marketed and sold solely under LICENSEE’s or an AUTHORIZED COMPANY’s name or
trademarks. The AUTHORIZED COMPANIES shall only be authorized to sell LICENSED PRODUCTS that are branded, marketed and sold solely under LICENSEE’s or such AUTHORIZED COMPANY’s name or trademarks. 

  

 -2- 

	2.2	The LICENSEE may sublicense its license granted in Section 2.1 under the LICENSED PATENTS to its LICENSED AFFILIATES or the AUTHORIZED COMPANIES which are listed in Exhibit D
attached hereto or to other LICENSED AFFILIATES or AUTHORIZED COMPANIES later approved by MPS. Such sublicense under the LICENSED PATENTS and the corresponding sublicense agreement shall be approved in writing in advance by MPS, and provided that
such sublicenses are solely for the purposes of having manufacturing LICENSED PRODUCTS or selling LICENSED PRODUCTS on behalf of LICENSEE, and provided that such LICENSED PRODUCTS are branded, marketed and sold solely under LICENSEE’s or such
AUTHORIZED COMPANY’s name or trademarks. 

  

	2.3	After MPS has approved a sublicense pursuant to Section 2.2, the LICENSEE shall sign and execute sublicense agreements with its AFFILIATES or the AUTHORIZED COMPANY with terms and
conditions no less stringent than this AGREEMENT. 

  

	2.4	Upon the execution of this AGREEMENT, provided that LICENSEE pays royalty according to Section 3 and Section 4 for at least two years or this Agreement is early terminated by MPS
with no fault of LICENSEE, MPS agrees to waive its right to bring any lawsuit related to the LICENSED PRODUCTS against the LICENSEE, its LICENSED AFFILIATES and/or the AUTHORIZED COMPANIES alleging that the LICENSED PRODUCTS manufactured and/or sold
by LICENSEE, its LICENSED AFFILIATES and/or the AUTHORIZED COMPANIES prior to the EFFECTIVE DATE or during the term of this AGREEMENT (for which royalties have been paid) are infringing any of the LICENSED PATENTS and waive its right to collect
royalty fees under the LICENSED PATENTS for the LICENSED PRODUCTS manufactured before the EFFECTIVE DATE of this AGREEMENT. 

  

	2.5	Except as expressly set forth herein, no license or right is granted to the LICENSEE, its AFFILIATES or the AUTHORIZED COMPANIES, hereunder, whether by implication, estoppel or
otherwise. In no event shall such licenses be interpreted to cover any modifications of the LICENSED PRODUCTS. 

  

 -3- 

 Section 3. ROYALTY FEE 
  

	3.1	In consideration of the license granted in Section 2, LICENSEE agrees to pay, pursuant to Exhibit C from the EFFECTIVE DATE, a running royalty on each LICENSED PRODUCT, which is
Sold, by LICENSEE, its AFFILIATES or the AUTHORIZED COMPANIES. 

  

	3.2	Licensed Products shall be considered “Sold” when invoiced or, if not invoiced, when billed out or, if not billed out, when delivered, shipped, otherwise disposed of, used
or set aside for subsequent use by LICENSEE or its AFFILIATES or an AUTHORIZED COMPANY. 

  

	3.3	All payments made under this Agreement are non-refundable. 

  
 Section 4. PAYMENTS, REPORTS, RECORDS AND TAX 
  

	4.1	The running royalty set forth in Section 3 above shall be computed and paid to MPS by LICENSEE for each calendar quarter. The royalty fee shall be paid half in advance before
beginning month of each calendar quarter, i.e. January, April, July, & October, based on LICENSEE’s provided quarterly forecast. The balance amount will be paid within 30 days of each calendar quarter ending on March 31st, June 30th,
September 30th and December 31st with LICENSEE’s provided royalty report by actual shipping results. 

  

	4.2	Within 30 days following the end of each quarter ending on March 31st, June 30th, September 30th and December 31st of each year (“Reporting Date”) during the term of the
AGREEMENT LICENSEE shall submit to MPS a written royalty report in suitable form prepared by Chief Financial Officer of LICENSEE, in which shall include (i) the quantity of the LICENSED PRODUCTS sold by the LICENSEE, its AFFILIATES and the
AUTHORIZED COMPANIES to third party other than the LICENSEE, its AFFILIATES or other LICENSEE’s AUTHORIZED COMPANIES (ii) a computation of the royalties due under this AGREEMENT and (iii) the amount of tax withheld by LICENSEE in accordance
with the laws Republic of China (“R.O.C.”). If any LICENSED PRODUCTS sold in preceding quarters have been returned by LICENSEE’s customers and LICENSEE refund the 

  

 -4- 

 payment to the customers, the royalty fee for such returned products shall be deducted from the amount of
the royalty fee payable to MPS of the current quarter provided LICENSEE has proved the return and refund. 
  

	4.3	The first royalty report and payment after the execution of the AGREEMENT shall cover the all LICENSED PRODUCTS sold by LICENSEE, its AFFILIATES and its AUTHORIZED COMPANIES from
EFFECTIVE DATE to the first Reporting Date after this AGREEMENT is executed. 

  

	4.4	All taxes, duties and other governmental or administrative charges and levies of any kind whatever (except taxes based upon the net income of MPS) resulting from or otherwise
arising out of any license granted hereunder or out of this Agreement, including but not limited to property, sales, use, value-added, withholding or other taxes which may be payable or collectible at the date hereof or in the future by MPS as a
result of this Agreement shall be the responsibility of the LICENSEE. 

  
 If the LICENSEE is required by law to withhold any taxes, duties or other charges, levies or amounts, then (i) the LICENSEE will promptly so notify MPS, and (ii) the LICENSEE shall pay as additional fees such
additional amounts as shall result in MPS receiving, net of any taxes, duties and withholdings, the amounts it would have otherwise received, pursuant to this Agreement or pursuant to an invoice from MPS, as applicable, if no such tax, duty or other
charge, levy or amount had been imposed or has been required to be withheld. 
  

	4.5	If LICENSEE fails to make any payment stipulated in this AGREEMENT within the time specified herein, LICENSEE shall pay an interest of five percent (5%) per year on the unpaid
balance payable from the due date until the date the amount being fully paid. 

  

 -5- 

	4.6	Any payment from LICENSEE to MPS hereunder shall be made by means of telegraphic transfer remittance in U.S. Dollars to the following bank account of MPS, and notice of the payment
shall be sent by LICENSEE to MPS’s address set forth in Article 10.9 of this AGREEMENT: 

  
 Bank: Cathay Bank 
  
 Beneficiary A/C Name: Monolithic Power Systems, Inc. 
  
 Account No.: [*] ABA No.: [*] 
  
 Swift Code: [*] 
  
 Address: 10480 S. DeAnza Blvd. 
  
 Cupertino, CA 95014 
  
 Section 5. ACCOUNTING AND AUDIT 
  
 In order to verify the royalty report submitted by LICENSEE, LICENSEE shall keep complete and accurate records, files, books for a period of three (3) years from the
sales or disposition of the LICENSED PRODUCTS. MPS may inspect/audit the records, files and books kept by LICENSEE in accordance with this paragraph; nevertheless, such inspection/audit shall be limited to only the records, files, and books direct
related to the sales and manufacture of the LICENSED PRODUCTS. MPS’s inspection/audit shall take place no more than once per calendar year and shall be conducted by a certified public auditor/accountant appointed by MPS during normal business
hours. MPS shall give written notice to LICENSEE of such inspection at least 10 days prior to such inspection. Such inspection/audit shall be at MPS’s own expenses; nevertheless, in the event that any discrepancy or error exceeding five percent
(5%) of the money actually due is established, the cost of the audit shall be borne by LICENSEE. 
  
 Section 6. TERM AND TERMINATION 
  

	6.1	The term of this AGREEMENT shall be two (2) years from the EFFECTIVE DATE unless earlier terminated by parties pursuant to the provisions set forth below. Parties agree to negotiate
in good faith to renew or extend the term of this AGREEMENT before termination of the original term set forth herein. 

  

	6.2	This AGREEMENT may be terminated prior to expiration of term by prior written notice to the other party if the other party breaches any material terms of this AGREEMENT and fails to
cure the breach within thirty (30) days after receipt of written notice from stating the nature of the breach from the non-breaching party. The non-breaching party may terminate this AGREEMENT forthwith by written notice to the breaching party.

  

 -6- 

	6.3	MPS shall also have the right to terminate this AGREEMENT forthwith by giving written notice of termination to LICENSEE at any time, upon or after: 

  

	 	(a)	the filing by LICENSEE of a petition in bankruptcy or insolvency; or 

  

	 	(b)	any adjudication that LICENSEE is bankrupt or insolvent; or 

  

	 	(c)	the filing by LICENSEE of any legal action or document seeking reorganization, readjustment or arrangement of LICENSEE’s business under any law relating to bankruptcy or
insolvency; or 

  

	 	(d)	the appointment of receiver for all or substantially all of the property of LICENSEE; or 

  

	 	(e)	the making by LICENSEE of any assignment for the benefit of creditors; or 

  

	 	(f)	the institution of, any proceedings for the liquidation or winding up of LICENSEE’s business or for the termination of its corporate charter; or 

  

	 	(g)	the assignment to third party of all or substantially all of the assets of LICENSEE. 

  

	6.4	In the event of the direct or indirect taking over of LICENSEE or an AUTHORIZED COMPANY by any superior authority or any third party, any change of control of LICENSEE or an
AUTHORIZED COMPANY, or any merger, acquisition or other sale or transfer of all or substantially all of the business or assets of LICENSEE or an AUTHORIZED COMPANY, MPS shall have the right to terminate this Agreement at any time thereafter upon
giving written notice thereof to LICENSEE. 

  

	6.5	If LICENSEE or any of its AFFILIATES, or an AUTHORIZED COMPANY, at any time, intentionally challenges or assists others to in writing challenge, the validity or enforceability

  

 -7- 

 of any of the LICENSED PATENTS or takes any action including but not limited to the filing of any patent
invalidation action, any re-examination or opposition, or any action for declaratory relief, or assist others to invalidate the LICENSED PATENTS or any other action that may effect the LICENSED PATENTS, MPS may terminate this AGREEMENT upon written
notice to LICENSEE, either in its entirety, or in part with respect to such LICENSED PATENT. 
  

	6.6	During the term of this Agreement, LICENSEE and its affiliates agree not to directly or indirectly assert any patent or sue or bring any action against MPS or MPS’s affiliates
alleging infringement of any patent, patent right or equivalent rights anywhere in the world, or authorize or assist any other person to do the foregoing. If LICENSEE does assert, sue, bring an action or authorize or assist any person as described
in the previous sentence, MPS may terminate this AGREEMENT upon written notice to LICENSEE. 

  

	6.7	MPS may, at its discretion and without cause, with six (6) months prior written notice, terminate this agreement; nevertheless, such termination right shall not be exercised by MPS
within one (1) year after the EFFECTIVE DATE. 

  

	6.8	In the event that MPS gives termination notice to LICENSEE pursuant to Sections 6.2 to 6.5, this AGREEMENT will be terminated immediately upon LICENSEE’s receipt of such
written termination notice from MPS. 

  

	6.9	LICENSEE shall pay the royalty fee accrued on or before the termination or expiration of AGREEMENT within thirty (30) days from the date of the termination or the expiration. If the
AGREEMENT expires naturally at the end of the 2 year term or the AGREEMENT has been terminated in accordance with the Section 6.7, then only within six (6) months after the expiration of this AGREEMENT, the LICENSEE has right to sell the LICENSED
PRODUCTS remain in stock by paying MPS royalty fee calculated in accordance with Exhibit C, provided the LICENSEE report to MPS the amount of the LICENSED PRODUCTS remain in stock within thirty (30) days from the date of the expiration.

  

 -8- 

 Section 7. CONFIDENTIALITY 
  

	7.1	Confidential Information. MPS and LICENSEE agree to maintain in strict confidence and not use for purposes other than contemplating or implementing this AGREEMENT, any confidential
or proprietary information identified by appropriate written legend, or if verbally disclosed, such information must be summarized in writing 30 days following such disclosure (hereinafter referred to as “Confidential Information”)
received from the disclosing party prior to the Effective Date or during the term of this Agreement. The Confidential Information shall include but not limited to, all documentations, samples, designs, specifications, engineering details received by
the other Party or its employees during the term of this AGREEMENT. 

  

	7.2	Duty Not to Disclose; Restrictions on Use. The receiving party of the Confidential Information (hereinafter referred to as “Receiving Party”) will not disclose the
Information to any third party without the express written authorization of the party disclosing the Confidential Information (hereinafter referred to as “Disclosing Party”), and shall make the Confidential Information available only to
those of its employees who have a need to know such Information to perform the obligations of this Agreement. The Receiving Party shall only use the Confidential Information for the purposes expressly authorized in this AGREEMENT. The Receiving
Party will use its best efforts to protect the secrecy of the Confidential Information, and the standard of care to be exercised shall not be less than that used by the receiving party to protect its own confidential Information of similar type and
nature. All Confidential Information and copies thereof shall be promptly destroyed or returned to the Disclosing Party after termination or expiration of this AGREEMENT upon request. 

  

	7.3	Exceptions. 

  

	 	(a)	Notwithstanding the foregoing, the obligations of this Section 7 shall not apply to Confidential Information to the extent it can be documented that such Confidential Information:

  

	 	(i)	is in the public domain other than through the fault of the Receiving Party; 

  

 -9- 

	 	(ii)	was in the possession of the Receiving Party without confidentiality obligation prior to first receiving it from the Disclosing Party; 

  

	 	(iii)	was independently developed by the Receiving Party without use of or access to Confidential Information of the Disclosing Party; or 

  

	 	(iv)	is obtained by the Receiving Party from a third party without confidentiality obligation. 

  

	 	(b)	Either Party may disclose Confidential Information: (i) as necessary to comply with any local laws; the valid order of the court, tribunal or other judicial body with competent
jurisdiction; or the lawful order of any competent law enforcement agency; and (ii) in confidence to such Party’s legal advisors, accountants, bankers, or financing sources as necessary in connection with obtaining services and/or financing
from such third parties. In the event that a Receiving Party is required to disclose Confidential Information under the circumstances set forth in Section 7.3(b)(i), the Receiving Party shall provide the Disclosing Party with reasonable prior notice
to allow the Disclosing Party to contest such order or requirement. 

  

	7.4	Injunctive Relief. In the event of the Receiving Party breaches its confidential obligations, the Disclosing Party shall be entitled to obtain equitable relief without having to
prove monetary damages, in addition to any other rights or remedies provided by this AGREEMENT or otherwise available at law or in equity. 

  

	7.5	Any breach of the confidentiality obligation provided in this Section 7 by any AFFILIATES, or an AUTHORIZED COMPANY shall be deemed a breach by the LICENSEE.

  

 -10- 

 Section 8. DISCLAIMER 
  

	8.1	Anything contained in this Agreement to the contrary notwithstanding, the obligations of the parties hereto shall be subject to all laws, both present and future, of any Government
having jurisdiction over the parties hereto, and to orders, regulations, directions or requests of any such Government, or any department, agency or corporation thereof, and to war, acts of public enemies, strikes or other labor disturbances, fires,
floods, acts of God, or any causes of like or different kind beyond the control of the parties and, except as hereinafter provided in this Section 8.1, the parties hereto shall be excused from any failure to perform any obligation hereunder to the
extent such failure is caused by any such law, order, regulation, direction, request or contingency. Notwithstanding the foregoing, LICENSEE shall not be excused by any such law, order, regulation, direction, request or contingency from its
obligations to furnish the statements and to make the payments provided for in Section 3 and Section 4 of this Agreement; nevertheless, if any of such law, order, regulation, direction, request, contingency or any situation which can not be
controlled by LICENSEE and prevents LICENSEE from performing its obligation provided in Section 3 & 4 and 8.3 of this AGREEMENT in accordance with the method and schedule set forth herein. LICENSEE shall not be held in breach of this AGREEMENT
and shall be exempted from any liability arising thereof. 

  

	8.2	MPS shall not be held responsible by LICENSEE for the validity of LICENSED PATENTS, should such validity be contested by third parties or should any patents not issue or be
prematurely terminated for any cause whatsoever. 

  

	8.3	Nothing herein shall be construed as: 

  

	 	(a)	a warranty or representation that anything made or used under any license granted hereunder is or will be free from infringement of patents of third persons;

  

	 	(b)	a warranty or representation that any of the LICENSED PATENTS are valid or enforceable; 

  

 -11- 

	 	(c)	a requirement that either party shall file or maintain any patent application, secure any patent, or maintain any patent in force; 

  

	 	(d)	an obligation to bring or prosecute actions or suits against third parties for infringement of any patent; or 

  

	 	(e)	conferring a right to use in advertising, publicity, or otherwise any trademark, trade name, trade dress or other name of MPS and its Subsidiaries. 

  
 Section 9. PROPRIETARY RIGHTS 
  
 All Patents, inventions, designs, manufacturing processes and engineering and other
proprietary information MPS owns and later licenses or provides to LICENSEE to implement this AGREEMENT shall be and remain the legal property of MPS. Subject to Section 6, LICENSEE shall have no rights under, and shall cease to use the LICENSED
PATENTS upon termination of this Agreement, and will promptly return to MPS any and all drawings, specifications, and all other information furnished by MPS to LICENSEE. 
  
 Section 10. MISCELLANEOUS 
  

	10.1	This Agreement constitutes the entire agreement of the parties and supercedes all prior agreements and discussions of the parties, and may not be amended unless agreed by both
parties in writing. 

  

	10.2	The rights and obligations of this AGREEMENT may not be transferred, delegated or assigned in whole or in part by either party without the prior written consent of the other. Any
change of control, merger, acquisition or other sale or transfer of all or substantially all of the business, stock or assets of LICENSEE shall be considered an assignment of this AGREEMENT. Any actual or attempted transfer, delegation or assignment
without the prior written consent of the other party shall be null and void, and shall result in immediate termination of this AGREEMENT. 

  

 -12- 

	10.3	The parties hereto shall keep the terms and conditions of this Agreement (except the existence of this Agreement) confidential and shall not divulge the same or any part thereof to
any third party except: 

  

	 	(a)	with the prior written consent of the other party; or 

  

	 	(b)	to any governmental body having jurisdiction to request and to read the same; or 

  

	 	(c)	as otherwise may be required by law or legal process; or 

  

	 	(d)	to legal counsel representing either party; or 

  

	 	(e)	as required for review by the competent authorities of the R.O.C. or the U.S. Government. 

  

	10.4	Nothing in this Agreement shall be construed to create an association, trust or partnership by and between the parties. 

  

	10.5	This Agreement is construed and governed by the laws of the State of California, U.S.A. without giving effect to its conflict of law provisions. 

  

	10.6	The parties hereto shall use their best efforts to resolve by mutual agreement any disputes, controversies or differences which may arise from, under, out of or in connection with
this Agreement. In event of any such disputes, controversies or differences arose between parties and cannot be settled between the parties hereto, all such disputes shall be finally settled under the Rules of Arbitration of the International
Chamber of Commerce (the “Rules”) by three arbitrators in accordance with such rules. Each party shall nominate one arbitrator for confirmation by the competent authority under the Rules (the “Appointing Authority”). Both
arbitrators shall agree on a third arbitrator within thirty (30) days; should the two arbitrators fail to agree on the third arbitrator within such 30 day period, the third arbitrator shall be appointed by the Appointing Authority. The location of
such arbitration shall be SINGAPORE]. The prevailing party in any suit under this Agreement shall recover all costs, expenses and reasonable attorney fees incurred in such action. 

  

 -13- 

	10.7	Any failure of either party to enforce, at any time or for any period of time, any of the provisions of this Agreement shall not be construed as a waiver of such provisions or of
the right of such party thereafter to enforce such provisions. 

  

	10.8	If any provision of this Agreement is held invalid or unenforceable by court of competent jurisdiction, then the remaining provisions will nevertheless remain in full force and
effect. 

  

	10.9	All notices required or permitted to be given hereunder shall be sent in writing to the address specified below or to such changed address as may have been previously notified in
writing by the addressed party by certified or registered airmail, by facsimile, or by e-mail with return receipt or confirmation: 

  
 If to MPS: MPS Inc. 
  
 Address: No. 983 University Ave. Building D Los Gatos, CA 95032, U.S.A, 
  
 Attention to: Michael Hsing 
  
 Facsimile No.: (408) 357-6601 
  
 E-MAIL: Michael.Hsing@monolithicpower 
  
 If to LICENSEE: Beyond Innovation Technology Co., Ltd. 
  
 Address: 5F, No. 136, Sec. 3, Nanjing E. Road, Taipei, Taiwan, R.O.C. 
  
 Attention to: Wayne Chiang 
  
 Facsimile No. :#886-2 -277 8-1050 
  
 E-MAIL: wayne_chiang@bitek.com.tw 
  
 Unless otherwise proven, each such notice given by either party hereto shall be deemed to have been arrived at other party while the sending party
receives the return receipt or confirmation. 
  

 -14- 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed in duplicate on the date below
written. 
  

							
	MPS	 	LICENSEE
				
	By:	  	 Michael Hsing /s/ Michael Hsing

	 	By:	 	 Wayne Chiang /s/ Wayne Chiang

	Title:	  	President & CEO	 	Title:	 	President
	Date:	  	 7/30/04
  
	 	Date:	 	

  

 -15- 

 EXHIBIT A 
  

	1.	BIT 3105 High Efficiency ZVS CCFL Controller (hereinafter referred to as “BIT3105”). 

  

	2.	BIT 3105P High Efficiency ZVS CCFL Controller (hereinafter referred to as “BIT3105P”). 

  

	3.	BIT 3105Q High Efficiency ZVS CCFL Controller (hereinafter referred to as “BIT3105Q”). 

  

	4.	BIT 3106 High Efficiency Dual ZVS CCFL Controller (hereinafter referred to as “BIT3106”). 

  

	5.	BIT 3106A High Efficiency Dual ZVS CCFL Controller (hereinafter referred to as “BIT3106A”). 

  

	6.	BIT 31068 High Efficiency Dual ZVS CCFL Controller (hereinafter referred to as “BIT31068”) 

  

	7.	BIT 3107 High Efficiency ZVS CCFL Controller (hereinafter referred to as “BIT3107”). 

 EXHIBIT B 
  

	1.	[*] 

  

	2.	[*] 

  

	3.	[*] 

  

	4.	[*] 

  

	5.	[*] 

 EXHIBIT C 
  

	1.	The applicable rate for the foregoing running royalty shall be: 

  
 BIT3105/3105P/3105Q/3107: [*] for each unit 
  
 BIT3106/3106A/3106B: [*] for each unit 
  
 In addition, Royalty fee [*] and [*] is under the condition of Section 4.4, All taxes, duties and other governmental or administrative charges and levies of any kind
whatever (except taxes based upon the net income of MPS) resulting from or otherwise arising out of any license granted hereunder or out of this Agreement, including but not limited to property, sales, use, value-added, withholding or other taxes
which may be payable or collectible at the date hereof or in the future by MPS as a result of this Agreement shall be the responsibility of the LICENSEE. If the above taxes, duties and other governmental or administrative charges become the
responsibility of MPS, the royalty fee would changed to be [*] and [*]. 

 EXHIBIT D 
  

AUTHORIZED COMPANIES: 
  

	1.	[*] 

  

	2.	[*]

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