EXHIBIT 10.1

CONSENT TO CREDIT AGREEMENT

 

THIS CONSENT TO CREDIT AGREEMENT dated as of October 16, 2018 (this “Consent”)
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
amended by that certain Consent to Credit Agreement dated as of May 22, 2017, as
amended by that certain Amendment No. 2 to Amended and Restated Credit Agreement
dated as of August 24, 2017, as amended by that certain Consent to Credit
Agreement dated as of April 20, 2018 (as further amended, restated, amended and
restated, supplemented or otherwise modified from time to time prior to the date
hereof, the “Credit Agreement”).

The Domestic Borrower has informed the Administrative Agent and the Lenders that
it wishes to engage in the following transaction:

 

A.

Diodes Hong Kong Holding Company Limited (“DHH”) has pledged 100% of the entire
issued capital of Diodes Hong Kong Limited (“DHK”) in favor of the
Administrative Agent pursuant to the Share Charge dated as of April 26, 2016
between DHH and the Administrative Agent (the “DHK Share Pledge”). The Foreign
Borrower has pledged 100% of the entire issued capital of DHH in favor of the
Administrative Agent pursuant to the Share Charge dated as of August 14, 2013
between the Foreign Borrower and the Administrative Agent (the “DHH Share
Pledge”).  

 

B.

DHH will be amalgamated with DHK on or about December 31, 2018 and DHH will be
the surviving entity (the “DHK Transaction”).

The Borrowers have requested that, notwithstanding Section 5.3 of the DHK Share
Pledge (or any other provision of the DHK Share Pledge) or any provision of the
DHH Share Pledge, the Administrative Agent and the Lenders consent to the DHK
Transaction. Subject to the terms and conditions set forth herein, the
Administrative Agent and each of the Lenders party hereto have agreed to grant
such request 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 Consent (including, without limitation, in the introductory
paragraph and the preliminary statements hereto) shall have the meanings
assigned thereto in the Credit Agreement.

 

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2.Consent.  Subject to the terms and conditions hereof, and notwithstanding
Section 5.3 of the DHK Share Pledge (or any other provision of the DHK Share
Pledge) and any provision of the DHH Share Pledge, the Administrative Agent and
the Lenders hereby consent to the DHK Transaction.  Further, the Administrative
Agent and Lenders agree and acknowledge that upon the consummation of the DHK
Transaction and the extinguishment of the separate legal existence of DHK, the
DHK Share Pledge shall be automatically terminated.

3.Conditions to Effectiveness.  This Consent shall be effective upon
satisfaction of each of the following conditions (such date, the “Consent
Effective Date”):

(a)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 Consent Effective Date and each in form and substance reasonably
satisfactory to the Administrative Agent and each of the Required Lenders:

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

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

(b)The Borrowers shall have paid all reasonable fees, charges and disbursements
of counsel to the Administrative Agent (directly to such counsel if requested by
the Administrative Agent) prior to or on the Consent Effective Date.

4.Effect of this Consent.  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 Consent 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, (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 or (e) to be a course of dealing or
a consent to any departure by the Borrowers from any other term or requirement
of the Credit Agreement.  References in this Consent 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:

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(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 Consent and each other document executed in
connection herewith to which it is a party.

(b)This Consent 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 nor would any
Default or Event of Default result after giving effect to this Consent 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 Consent 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 Consent, 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 DHBV, as company (as amended,
restated, amended and restated, supplemented or otherwise modified from time to
time, the “DHBV Dutch Share Pledge”), (ii)  that certain Deed of Pledge of
Shares dated July 21, 2016, among DHBV, 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 DHBV 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 “DHBV
Omnibus Pledge Agreement”, together with the Foreign Borrower Omnibus Pledge
Agreement, the Foreign Borrower Dutch Share Pledge and the DHBV 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 (after giving effect to this Consent), 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, after giving effect to this Consent;

(b)notwithstanding the consents to the Credit Agreement pursuant to this
Consent, 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 Consent;

(c)any amount owed by any Borrower under the Credit Agreement (after giving
effect to this Consent) 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, including, for the avoidance of
doubt, the matters of the type addressed by this Consent.

8.Miscellaneous

(a)Governing Law.  THIS CONSENT 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
Consent 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 Consent shall constitute a “Loan Document” under and as
defined in the Credit Agreement.

(c)Counterparts; Electronic Execution. This Consent 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 Consent by telecopy or other electronic imaging means
shall be effective as delivery of a manually executed counterpart of this
Consent.  

(d)Severability.  If any provision of this Consent 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 Consent, 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 DHBV is represented by an
attorney in connection with the signing and/or execution of this Consent or any
other agreement, deed or

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document referred to in or made pursuant to this Consent, it is hereby expressly
acknowledged and accepted by the other parties to this Consent 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 Consent 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:CFO

 

FOREIGN BORROWER:

 

DIODES INTERNATIONAL B.V.

 

By:  /s/ Richard D. White

 

Name:Richard D. White

 

Title:Managing Director A

By:  /s/Bauke Faber

 

Name:___Bauke Faber__________________

 

Title:Managing Director B

 

SUBSIDIARY GUARANTORS:

 

DIODES HOLDINGS UK LIMITED

 

By:  /s/Richard D. White

 

Name:Richard D. White

 

Title:CFO

Signature Page to Consent to Credit Agreement

Diodes Incorporated

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DIODES ZETEX LIMITED

 

By:  /s/Richard D. White

 

Name:Richard D. White

 

Title:CFO

DIODES HOLDING B.V.

 

By:  /s/Richard D. White

 

Name:Richard D. White

 

Title:  Managing Director A

 

 

 

By:  /s/Bauke Faber

 

Name:_Bauke Faber_____________________

Title:  Managing Director B

 

 

 

Signature Page to Consent to Credit Agreement

Diodes Incorporated

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BANK OF AMERICA, N.A.,

as Administrative Agent

 

 

By:  /s/ Anthony W. Kell

 

Name:  Anthony W. Kell

 

Title:Vice President

Signature Page to Consent to 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 Consent to Credit Agreement

Diodes Incorporated

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COMPASS BANK,

as a Lender

By:  /s/Michael Sheff

 

Name:  Michael Sheff

 

Title:Senior Vice President

Signature Page to Consent to Credit Agreement

Diodes Incorporated

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CITIBANK, N.A.,

as a Lender

 

 

By:  /s/ Randy Humphreys

 

Name:  Randy Humphreys

 

Title:Director

Signature Page to Consent to Credit Agreement

Diodes Incorporated

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BMO HARRIS BANK N.A.,

as a Lender

By:  /s/Michael Kus

 

Name:  Michael Kus

 

Title:Managing Director

Signature Page to Consent to Credit Agreement

Diodes Incorporated

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REGIONS BANK,

as a Lender

By:  /s/ Derek Miller

 

Name:  Derek Miller

 

Title:Vice President

Signature Page to Consent to Credit Agreement

Diodes Incorporated

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SILICON VALLEY BANK,

as a Lender

By:  /s/Ryan Thompson

 

Name:  Ryan Thompson

 

Title:Vice President

Signature Page to Consent to Credit Agreement

Diodes Incorporated

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CAPITAL ONE, N.A.,

as a Lender

By:  /s/ Seth Meier

 

Name:  Seth Meier

 

Title:Director

Signature Page to Consent to 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 Consent to Credit Agreement

Diodes Incorporated

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MUFG UNION BANK, N.A.,

as a Lender

By:  /s/Matthew Antioco

 

Name:  Matthew Antioco

 

Title:Director

 

 

Signature Page to Consent to Credit Agreement

Diodes Incorporated

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WELLS FARGO BANK, N.A.,

as a Lender

By:  /s/Derek Jensen

 

Name:  Derek Jensen

 

Title:Vice President

Signature Page to Consent to Credit Agreement

Diodes Incorporated