EXHIBIT 10.80.2

 

Execution Version

AMENDMENT NO. 2 to AMENDED AND RESTATED Credit Agreement

 

THIS AMENDMENT NO. 2 TO AMENDED AND RESTATED CREDIT AGREEMENT dated as of August
24, 2017 (this “Agreement”) is entered into among DIODES INCORPORATED, a
Delaware corporation (the “Domestic Borrower”), DIODES INTERNATIONAL B.V., a
besloten vennootschap met beperkte aansprakelijkheid organized under the laws of
the Netherlands, having its statutory seat in Amsterdam, the Netherlands and
registered with the trade register of the Chambers of Commerce in the
Netherlands under number 34274981 (the “Foreign Borrower” and together with the
Domestic Borrower, the “Borrowers” and each, individually, a “Borrower”),
certain Subsidiaries of the Domestic Borrower identified on the signature pages
hereto as subsidiary guarantors (the “Subsidiary Guarantors”), the Lenders
identified on the signature pages hereto and BANK OF AMERICA, N.A., as
Administrative Agent (in such capacity, the “Administrative Agent”).

 

PRELIMINARY STATEMENTS

The Borrowers, Subsidiary Guarantors, the Lenders and the Administrative Agent
are parties to that certain Amended and Restated Credit Agreement dated as of
October 26, 2016, as amended by that certain Amendment No. 1 to Amended and
Restated Credit Agreement and Limited Waiver dated as of February 13, 2017 (as
further amended, restated, amended and restated, supplemented or otherwise
modified from time to time prior to the date hereof, the “Credit Agreement”).

On or about March 1, 2017, Diodes Taiwan Incorporated, a corporation organized
under the laws of Taiwan (“DTI”), merged into Diodes Taiwan SARL, an entity
organized under the laws of Luxembourg (“DTSARL”), with DTSARL being the
surviving entity and continuing to operate in Taiwan.  The Borrowers have
advised that before the merger, DTSARL had no operations or operating assets;
thus, the post-merger entity is the same business as DTI, now organized as an
SARL under Luxembourg law.

The Borrowers have requested that the Administrative Agent and the Lenders agree
to amend the Credit Agreement to allow DTSARL to utilize the exception to the
Indebtedness negative covenant set forth in Section 7.02(g) previously available
to DTI as a Subsidiary organized under the laws of a jurisdiction in
Asia.  Subject to the terms and conditions set forth herein, the Administrative
Agent and each of the Lenders party hereto have agreed to grant such requests of
the Borrowers.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Defined Terms.  Except as otherwise provided herein, all capitalized undefined
terms used in this Agreement (including, without limitation, in the introductory
paragraph and the preliminary statements hereto) shall have the meanings
assigned thereto in the Credit Agreement.

2.Credit Agreement Amendment.

Section 7.02(g) of the Credit Agreement is hereby amended and restated as
follows:

(g)Indebtedness of Subsidiaries (inclusive of the Indebtedness of such
Subsidiaries set forth on Schedule 7.02) organized under the laws of a
jurisdiction in Asia and of Diodes Taiwan SARL, an entity organized under the
laws of Luxembourg, in an aggregate amount not to exceed $70,000,000 at any
time, all of which may be refinanced, amended or replaced from time to time;
provided that the aggregate amount of such Indebtedness does not exceed
$70,000,000;

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3.Conditions to Effectiveness.  This Agreement shall be effective upon the
Administrative Agent's receipt of the following, each of which shall be
originals or electronic images in a portable document format (e.g. “.pdf” or
“.tif”) (followed promptly by originals) unless otherwise specified, each
properly executed by a Responsible Officer of the signing Loan Party, each dated
the date hereof (the first date all the conditions precedent in this Section 4
are satisfied or waived in accordance with Section 11.01 of the Credit Agreement
(the “Second Amendment Effective Date”)) and each in form and substance
reasonably satisfactory to the Administrative Agent and each of the Required
Lenders:

(a)executed counterparts of this Agreement signed by the Borrowers, the
Guarantors, the Administrative Agent and the Required Lenders; and

(b)such other assurances, certificates, documents, consents or opinions as the
Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required
Lenders reasonably may require.

Without limiting the generality of the provisions of the last paragraph of
Section 9.03 of the Credit Agreement, for purposes of determining compliance
with the conditions specified in this Section 4, the L/C Issuer and each Lender
that has signed this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to a
Lender unless the Administrative Agent shall have received notice from such
Lender prior to the proposed Second Amendment Effective Date specifying its
objection thereto.

4.Effect of this Agreement.  Except as expressly provided herein, the Credit
Agreement, the Collateral Agreement and the other Loan Documents shall remain
unmodified and in full force and effect.  Except as expressly set forth herein,
this Agreement shall not be deemed (a) to be a waiver of, or consent to a
modification of or amendment of, any other term or condition of the Credit
Agreement, the Collateral Agreement or any other Loan Document, (b) to prejudice
any other right or rights which the Administrative Agent or the Lenders may now
have or may have in the future under or in connection with the Credit Agreement,
the Collateral Agreement or the other Loan Documents or any of the instruments
or agreements referred to therein, as the same may be amended, restated,
supplemented or otherwise modified from time to time, (c) to be a commitment or
any other undertaking or expression of any willingness to engage in any further
discussion with the Borrowers or any other Person with respect to any waiver,
amendment, modification or any other change to the Credit Agreement, the
Collateral Agreement or the other Loan Documents or any rights or remedies
arising in favor of the Lenders or the Administrative Agent, or any of them,
under or with respect to any such documents or (d) to be a waiver of, or consent
to a modification or amendment of, any other term or condition of any other
agreement by and among any Loan Party, on the one hand, and the Administrative
Agent or any other Lender, on the other hand.  References in this Agreement to
the Credit Agreement (and indirect references such as “hereunder”, “hereby”,
“herein”, and “hereof”) and in any Loan Document to the Credit Agreement shall
be deemed to be references to the Credit Agreement as modified hereby.  

5.Representations and Warranties/No Default.  By their execution hereof, each
Loan Party hereby represents and warrants as follows:

(a)Such Loan Party has the right, power and authority and has taken all
necessary corporate and other action to authorize the execution and delivery of,
and the performance in accordance with their respective terms of the
transactions consented to in, this Agreement and each other document executed in
connection herewith to which it is a party.

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(b)This Agreement and each other document executed in connection herewith has
been duly executed and delivered by its duly authorized officers, and each such
document constitutes the legal, valid and binding obligation of such Loan Party,
enforceable in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar state
or federal debtor relief laws from time to time in effect which affect the
enforcement of creditors’ rights in general and the availability of equitable
remedies.

(c)Each of the representations and warranties set forth in the Credit Agreement
and the other Loan Documents is true and correct as of the date hereof, except
to the extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct as of such earlier
date, and except that the representations and warranties contained in
subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed
to refer to the most recent statements furnished pursuant to subsections (a) and
(b), respectively, of Section 6.01 of the Credit Agreement.

(d)No Default or Event of Default has occurred or is continuing (after giving
effect to this Agreement) nor would any Default or Event of Default result after
giving effect to this Agreement and the transactions contemplated hereby.

(e)No Loan Party is an EEA Financial Institution.

6.Reaffirmations.  (a) Each Loan Party agrees that the transactions contemplated
by this Agreement shall not limit or diminish the obligations of such Person
under, or release such Person from any obligations under, the Credit Agreement
(including the Guaranty), the Collateral Agreement and each other Loan Document
to which it is a party, (b) each Loan Party confirms, ratifies and reaffirms its
obligations under the Credit Agreement (including the Guaranty), the Collateral
Agreement and each other Loan Document to which it is a party, and (c) each Loan
Party agrees that, except as otherwise expressly agreed in this Agreement, the
Credit Agreement (including the Guaranty), the Collateral Agreement and each
other Loan Document to which it is a party remain in full force and effect and
are hereby ratified and confirmed.

7.Confirmation as to Dutch Collateral Documents.  Reference is made to (i) that
certain Deed of Pledge of Shares dated October 20, 2016, among the Domestic
Borrower, Pericom Semiconductor Corporation and Diodes Investment Company, as
pledgors, Bank of America, N.A. as pledgee and Diodes Holding B.V., a besloten
vennootschap met beperkte aansprakelijkheid (private limited company)
incorporated under the laws of the Netherlands, having its statutory seat in
Amsterdam, the Netherlands, and registered with the trade register of the
Chambers of Commerce in the Netherlands under number 6523060 (“Dutch NewCo”), as
company (as amended, restated, amended and restated, supplemented or otherwise
modified from time to time, the “NewCo Dutch Share Pledge”), (ii)  that certain
Deed of Pledge of Shares dated July 21, 2016, among Dutch NewCo, as pledgor, the
Administrative Agent as pledgee and the Foreign Borrower as company (the
“Foreign Borrower Dutch Share Pledge”), (iii) that certain omnibus pledge
agreement dated 8 January 2013, between the Foreign Borrower as pledgor and Bank
of America, N.A. as pledgee (as amended, restated, amended and restated,
supplemented or otherwise modified from time to time, the “Foreign Borrower
Omnibus Pledge Agreement”) and (iv) that certain omnibus pledge agreement dated
July 18, 2016, between Dutch NewCo as pledgor and Bank of America, N.A. as
pledgee (as amended, restated, amended and restated, supplemented or otherwise
modified from time to time, the “Dutch NewCo Omnibus Pledge Agreement”, together
with the Foreign Borrower Omnibus Pledge Agreement, the Foreign Borrower Dutch
Share Pledge and the NewCo Dutch Share Pledge, the “Dutch Collateral
Documents”).  Each party to the Dutch Collateral Documents hereby confirms that:

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(a)the Credit Agreement (as amended by this Agreement), and the other Loan
Documents will remain in full force and effect and any reference in the Loan
Documents to the Credit Agreement or to any provision of the Credit Agreement
will be construed as a reference to the Credit Agreement, or that provision, as
amended by this Agreement;

(b)notwithstanding the amendments made to the Credit Agreement pursuant to this
Agreement, the Dutch Collateral Documents and the security interests created
thereunder will remain in full force and effect and will continue to secure all
liabilities which are expressed to be secured by them and the rights of the Loan
Parties under such security interest will not be affected by this Agreement;

(c)any amount owed by any Borrower under this Agreement and the Credit Agreement
(as amended by this Agreement) is part of (i) the definition of Secured
Obligations (as included/defined in the Dutch Collateral Documents) and (ii)
each Loan Party’s Parallel Debts (as included/defined in the Credit Agreement);
and

(d)at the time of the entering into the Dutch Collateral Documents, it was their
intention that the security rights created pursuant to the Dutch Collateral
Documents would secure the Foreign Obligations as they may be amended, restated,
supplemented or otherwise modified from time to time, including amendments to
the Credit Agreement and the Loan Documents such as the amendments to be
effected by this Agreement.  

8.Miscellaneous

(a)Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  Without limiting the general
applicability of the foregoing and the terms of the other Loan Documents to this
Agreement and the parties hereto, the terms of Section 11.14 and Section 11.15
of the Credit Agreement are incorporated herein by reference, mutatis mutandis.

(b)Loan Document.  This Agreement shall constitute a “Loan Document” under and
as defined in the Credit Agreement.

(c)Counterparts; Electronic Execution. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  Delivery of an executed counterpart of a
signature page of this Agreement by telecopy or other electronic imaging means
shall be effective as delivery of a manually executed counterpart of this
Agreement.  

(d)Severability.  If any provision of this Agreement is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and
the remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.

(e)Entirety.  This Agreement, the other Loan Documents and the other documents
relating to the Obligations represent the entire agreement of the parties hereto
and thereto, and supersede all prior agreements and understandings, oral or
written, if any, including any commitment letters or correspondence relating to
the Loan Documents, any other documents relating to the Obligations, or the
transactions contemplated herein and therein.

(f)Netherlands Law. If the Foreign Borrower and/or Dutch NewCo is represented by
an attorney in connection with the signing and/or execution of this Agreement or
any other agreement,

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deed or document referred to in or made pursuant to this Agreement, it is hereby
expressly acknowledged and accepted by the other parties to this Agreement that
the existence or extent of the attorney’s authority and the effects of the
attorney’s exercise or purported exercise of his or her authority shall be
governed by the laws of the Netherlands.

[Remainder of page intentionally blank.]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.

DOMESTIC BORROWER:

 

DIODES INCORPORATED

 

By:  /s/ Richard D. White

 

Name:Richard D. White

 

Title:Chief Financial Officer

 

FOREIGN BORROWER:

 

DIODES INTERNATIONAL B.V.

 

By:  /s/ Richard D. White

 

Name: Richard D. White

 

Title:Managing Director A

By:  /s/ B. B. Faber

 

Name: B. B. Faber

 

Title:Managing Director B

 

SUBSIDIARY GUARANTORS:

 

DIODES INVESTMENT COMPANY

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Chief Financial Officer

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

 

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DIODES FABTECH INC.

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Director

 

DIODES HOLDINGS UK LIMITED

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Director

 

DIODES ZETEX LIMITED

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Director

PERICOM SEMICONDUCTOR CORPORATION

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:Chief Financial Officer and Secretary

 

 

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

 

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DIODES HOLDING B.V.

 

By:  /s/ Richard D. White

 

Name:  Richard D. White

 

Title:  Managing Director A

 

 

 

 

By:  /s/ B. B. Faber

 

Name: B. B. Faber

Title:  Managing Director

 

 

 

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

 

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BANK OF AMERICA, N.A.,

as Administrative Agent

 

 

By:  /s/ Mollie S. Canup

 

Name:  Mollie S. Canup

 

Title:Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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BANK OF AMERICA, N.A.,

as a Lender, L/C Issuer and Swing Line Lender

 

By:  /s/ Jennifer Yan

 

Name:  Jennifer Yan

 

Title:Senior Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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COMPASS BANK,

as a Lender

By:  /s/ Jay S. Tweed

 

Name:  Jay S. Tweed

 

Title:SVP

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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CITIBANK, N.A.,

as a Lender

 

 

By:  /s/ D. Sowards

 

Name:  Debbie Sowards

 

Title:Senior Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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BMO HARRIS BANK N.A.,

as a Lender

By:  /s/ Josh Hovermale

 

Name:  Josh Hovermale

 

Title:Director

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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REGIONS BANK,

as a Lender

By:  /s/ Mohamed Saadalla

 

Name:  Mohamed Saadalla

 

Title:Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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SILICON VALLEY BANK,

as a Lender

By:  /s/ Robert Clouse

 

Name:  Robert Clouse

 

Title:Director

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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CAPITAL ONE, N.A.,

as a Lender

By:  /s/ Richard O’Neill

 

Name:  Richard O’Neill

 

Title:Managing Director

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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COMERICA BANK,

as a Lender

By:  /s/ John Smithson

 

Name:  John Smithson

 

Title:Vice President

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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MUFG UNION BANK, N.A.,

as a Lender

By:  /s/ Lillian Kim

 

Name:  Lillian Kim

 

Title:Director

 

 

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated

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WELLS FARGO BANK, N.A.,

as a Lender

By:  /s/ Mitsoo Iravani

 

Name:  Mitsoo Iravani

 

Title:Sr. Vice Presdent

 

Signature Page to Amendment No. 2 to A&R Credit Agreement

Diodes Incorporated