8-KMaterial AgreementsExhibits & Filings

MONOLITHIC POWER SYSTEMS INC 8-K Report, Material Agreement (Oct 4, 2006)

Filed October 4, 2006For Securities:MPWR

Summary

Monolithic Power Systems, Inc. (MPWR) filed an 8-K report on October 4, 2006, primarily to disclose a material definitive agreement regarding the employment of Ms. Adriana Chiocchi as Chief Legal Officer (CLO) and Corporate Secretary, effective October 2, 2006. This appointment is significant as it fills a key executive role and involves substantial compensation and equity awards. The filing details Ms. Chiocchi's base salary, bonus potential, and a stock option grant, indicating the company's investment in key leadership talent. Investors should note the terms of Ms. Chiocchi's compensation package, including her base salary of $225,000, a guaranteed minimum bonus of 20% of base salary for the first year ($45,000), and stock options to purchase 150,000 shares of common stock with a staggered vesting schedule. The company also entered into an indemnification agreement with Ms. Chiocchi, consistent with those provided to other executive officers and directors, which is standard practice for mitigating executive risk.

Key Highlights

  • 1Monolithic Power Systems, Inc. appointed Ms. Adriana Chiocchi as Chief Legal Officer (CLO) and Corporate Secretary, effective October 2, 2006.
  • 2Ms. Chiocchi's annual base salary is set at $225,000.
  • 3For the first year, Ms. Chiocchi is guaranteed a minimum bonus of 20% of her base salary, totaling $45,000.
  • 4The company granted Ms. Chiocchi stock options to purchase 150,000 shares of common stock.
  • 5The stock options vest over four years, with 25% vesting one year after the grant date and the remainder vesting monthly thereafter, contingent on continued service.
  • 6An indemnification agreement was entered into with Ms. Chiocchi, aligning with agreements for other executives and directors.

Frequently Asked Questions

Ms. Adriana Chiocchi has been appointed as the Chief Legal Officer (CLO) and Corporate Secretary of Monolithic Power Systems, Inc., effective October 2, 2006. She is also designated as a Section 16 Officer under the Securities Exchange Act of 1934.

Ms. Chiocchi will receive a base salary of $225,000 per year. She will also participate in the company's bonus plan, with a guaranteed minimum bonus of $45,000 (20% of base salary) for her first year. Additionally, she was granted options to purchase 150,000 shares of the company's common stock.

The stock options granted to Ms. Chiocchi vest over a period of four years. Twenty-five percent (25%) of the shares vest one year after October 2, 2006, and an additional 1/48th of the shares vest each month thereafter, provided Ms. Chiocchi remains in continuous service with the company.

The indemnification agreement ensures that Ms. Chiocchi is protected against certain liabilities that may arise from her service as an officer and director. The terms are materially consistent with those provided to other executive officers and directors of Monolithic Power Systems, which is a standard practice to attract and retain senior leadership.