Document:

Exhibit 10.15

    
      

    

    EXHIBIT
      10.15

     

    2001
      STOCK OPTION PLAN

     

    MEDIWARE
      INFORMATION SYSTEMS, INC.

     

    STOCK
      OPTION AGREEMENT

     

    THIS
      AGREEMENT,
      made as
      of the Grant Date set forth below, by and between Mediware Information Systems,
      Inc., a New York corporation having its principal place of business at the
      address set forth below (hereinafter called the “Company”), and the individual
      whose name and residence appear below on the first page of this Agreement
      (hereinafter called “Optionee”).

    

    WHEREAS,
      the
      terms and conditions of the Options granted to Optionee and evidenced by this
      Agreement are as follows:

    

    
      	 	
              Name
                of Optionee:

            	 	
              Grant
                Date:

            
	 	 	 	 
	 	
                 

            	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	
              Type
                of Option:

            
	 	
              Address
                of Optionee:

            	 	 
	 	 	 	
              Non-Qualified
                Stock Option

            
	 	
                 

            	 	 
	 	 	 	 
	 	
                 

            	 	 
	 	 	 	
              Number
                of Option Shares:

            
	 	 	 	 
	 	 	 	
              Expiration
                Date:

            
	 	 	 	 
	 	 	 	
              Exercise
                Price Per Share:

            
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	
              Vesting
                Provisions:

            
	 	 	 	 
	 	 	 	
              Anniversary
                of

              Grant
                Date:

            	
              Shares

              Becoming

              Exercisable

            
	 	 	 	 	 
	 	 	 	
              First

              Second

              Third

            	 

    

    

    Company
      Address: 
11711
      W.
      79th
      Street,
      Lenexa, KS 66214

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    WHEREAS,
      Optionee
      is a key employee or director of, or consultant to, the Company; and

    

    WHEREAS,
      as an
      incentive for the Optionee and as compensation and a benefit to him or her
      for
      serving as an employee, director or consultant, the Company has offered to
      issue, and the Optionee has agreed to accept, options to purchase shares of
      common stock of the Company pursuant to the 2001 Stock Option Plan of the
      Company (the “Plan”).

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants hereinafter set forth and for other good
      and valuable consideration, the parties hereto hereby agree as
      follows:

    

    1.    Grant
      of Options:
      Pursuant to and subject in all respects to the provisions of the Plan, the
      Company -hereby grants to the Optionee, under the terms and conditions set
      forth
      in this Agreement and the Plan, as of the Grant Date, Options to purchase the
      aggregate number of shares of common stock, par value $.10 per share, of the
      Company (“Common Stock”) set forth above on the first page of this Agreement
      subject to adjustment in accordance herewith (which shares are hereinafter
      called “Option Shares”). The Option Shares may be purchased by exercising the
      Options in accordance with the terms of this Agreement, at the exercise price
      per share set forth on the first page of this Agreement, which price, if for
      an
      Incentive Stock Option, is not less than the fair market value of a share of
      Common Stock on the date of grant; and if for a Non-qualified Option is not
      less
      than 85% of the fair market value of the stock on the date of the grant. Terms
      defined in the Plan shall have the same meaning in this Agreement unless the
      context requires otherwise.

    

    2.    Vesting
      of Options.
      The
      Options shall vest as set forth on the first page of this Agreement. If no
      vesting period or other restriction on vesting is specified in the resolution
      passed granting the Options referred to herein or on the first page of this
      Agreement, such Option shall vest and be exercisable as follows: 33-1/3% after
      one year from grant, 66-2/3% after two years from grant, and 100% after three
      years from grant. The Options shall remain exercisable until the “Expiration
      Date” set forth on the first page of this Agreement unless earlier terminated as
      provided herein. 

    

    The
      Options and exercisability of the Options shall be subject in all respects
      to
      the terms and conditions set forth in this Agreement, and all other terms and
      conditions of the Plan and any rules or regulations or other determinations
      of
      the Compensation and Stock Option Committee (the “Committee”). Unless
      specifically indicated on the first page of this Agreement, it is not intended
      that the Options shall be incentive stock options for the purposes of the
      Internal Revenue Code of 1986, as amended.

    

    If
      a
      Change of Control, as defined in Section 6(b) of the Plan, is threatened or
      proposed, all Options shall become exercisable in full immediately upon the
      occurrence of the Change of Control. In
      the
      event of a Change of Control, the surviving, continuing, successor, or
      purchasing entity or parent thereof, as the case may be (the “Acquiror”), shall
      assume the Company's rights and obligations with respect to these outstanding
      Options. The Acquiror may substitute options to acquire its own stock having
      equal value (calculated as of the date of the Change of Control) for such
      outstanding Options.

    

    3.    Transferability.
      The
      Options may not be sold, pledged, assigned, hypothecated, transferred or
      disposed of in any manner other than by will or the laws of descent and
      distribution or as specified in Section 7 of the Plan, and the Options may
      be
      exercised during the lifetime of the Optionee by the Optionee or by his or
      her
      guardian or legal representative as stated in the Plan. 

    

    4.    Exercisable
      only during Employment; Death; Disability.
      Options
      shall be exercisable during the Optionee’s lifetime only by the Optionee and may
      not be assigned or transferred in any manner except by will or by the laws
      of
      descent and distribution, except as provided in Sections 7 and 8 of the Plan.
      

    

    5.    Confidential
      Information; Forfeiture;.

    (a)    To
      the
      extent enforceable under applicable law, the Optionee hereby agrees and
      undertakes that he or she (i) will not, without the Company’s prior written
      consent, for a period of nine (9) months within the United States and Canada
      directly or indirectly, alone or as a partner, officer, director, employee,
      consultant, agent, independent contractor or significant shareholder of any
      company or business, engage in any business activity which is directly or
      indirectly in competition with the Company with respect to any of the products
      or services being considered, developed, sold or otherwise marketed by the
      Company at such time; and (ii) will not, for a period of twelve (12) months
      within the United States and Canada directly or indirectly, employ, or knowingly
      permit any company or business organization directly or indirectly controlled
      by
      him or her to employ, any person who is employed by the Company or in any manner
      seek to induce any such person to leave his or her employment by the Company.
      Any unexercised Options shall be forfeited immediately upon a breach of such
      undertaking as determined by the Committee and set forth in a notice given
      to
      the Optionee and Company, any such determination to be final and binding on
      all
      parties.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (b)  
       The Optionee hereby agrees and undertakes that he or she will not at any
      time, whether during or after the termination of the Optionee’s employment,
      reveal to any person or entity any of the trade secrets or confidential
      information concerning the products, services, organization, business or
      finances of the Company or of any third party which the Company is under an
      obligation to keep confidential (including but not limited to trade secrets
      or
      confidential information respecting inventions, designs, methods, know-how,
      techniques, systems, software programs, works of authorship, customer lists,
      projects, plans and proposals), except as may be required in the ordinary course
      of performing the duties as an Optionee of the Company, and the Optionee shall
      keep secret all matters entrusted to him or her and shall not use or attempt
      to
      use any such information in any manner which may injure or cause loss or may
      be
      calculated to injure or cause loss, whether directly or indirectly, to the
      Company. Any unexercised Options shall be forfeited immediately upon a breach
      of
      such undertaking as determined by the Committee and set forth in a notice given
      to the Optionee and Company, any such determination to be final and binding
      on
      all parties.

    

    (c)  
       Any unexercised Options that have been awarded to the Optionee shall be
      forfeited if the Committee determines that the Optionee’s employment has been
      terminated for Cause, as stated in Section 8(b) of the Plan. The Committee’s
      determination with respect to a forfeiture shall be set forth in a notice given
      to the Optionee and to the Company and shall be final and binding on all
      parties; any forfeiture shall take place immediately upon receipt of the notice
      by the Company.

    

    (d)  
       Optionee acknowledges and agrees that the Restrictive Covenants are
      reasonable and necessary for the protection of the Company’s business interests.
      Nothing contained herein shall be construed as prohibiting the Company from
      pursuing any other remedies available to it including equitable relief and
      the
      recovery of any damages.

    

    (e)  
       If any court of competent jurisdiction shall at any time deem any term of
      this Agreement or any provision or provisions of any covenant, undertaking
      or
      agreement on the part of the Optionee contained in this Section 5 (“Restrictive
      Covenants”) too lengthy or too restrictive or the territory too extensive, the
      other terms and provisions of Section 5 shall nevertheless stand, the
      restrictive periods shall be deemed to be the longest periods permissible by
      law
      under the circumstances, the other restrictive provisions and conditions shall
      be the most protective to the Company as may be permissible under law in the
      circumstances, and the territory in which activities are restricted shall be
      deemed to comprise the largest territory permissible by law under the
      circumstances. The court in each case shall reduce the Restrictive Covenants,
      time period, territory and/or other restrictions or provisions to the maximum
      permissible duration or size or reasonable restriction. 

    

    6.    No
      Right to Dividends, Distributions or Voting.
      The
      Optionee shall not have any rights as a shareholder with respect to any Option
      Shares until the date of issuance of stock certificates for such Option Shares
      upon due exercise of the Options. Until the issuance of stock certificates,
      no
      right to vote or receive dividends or any other rights as a shareholder shall
      exist with respect to Option Shares notwithstanding the exercise of the Options.
      No adjustment will be made for a divi-dend or other rights for which the record
      date is prior to the date the stock certificate is issued except as provided
      in
      Section 7 hereof.

    

    7.    Adjustment
      in Option Shares; Change of Control.
      Optionee shall be entitled to appropriate adjustments, as determined by the
      Committee, to the number and class of shares of Common Stock subject to the
      Plan
      and to any outstanding Options and in the exercise price of any outstanding
      Options in the event of a reclassification, recapitalization, stock split,
      reverse stock split, stock dividend, combination of shares, merger,
      consolidation, rights offering or any other change in the corporate structure
      or
      shares of the Company, as described in Section 9 of the Plan.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    8.    Exercise.
      The
      exercise of an Option must be by written notice to the Company at its principal
      place of business which must state the election to exercise the Option, the
      number of shares for which the Option is being exercised and such other
      representations and agreements as to the Optionee's investment intent with
      respect to such shares as may be required pursuant to Section 6(c) of the Plan.
      The written notice must be signed by the Optionee and must be delivered in
      person, by certified or registered mail, return receipt requested, or by
      confirmed facsimile transmission, to the Chief Financial Officer or other
      authorized representative of the Company, prior to the termination of the
      Option, accompanied by full payment of the exercise price for the number of
      shares being purchased. The Option Shares to be purchased upon each exercise
      of
      any Option shall be paid for in full at the time of such exercise, such payment
      to be made (i) in cash, by certified or bank cashier’s or teller’s check, or
      cash equivalent, (ii) by tender to the Company of shares of the Company’s
      capital stock owned by the Optionee and having a fair market value on the date
      of exercise equal to the aggregate exercise price of the shares of Option Shares
      to be purchased upon such exercise, (iii) by the assignment of the proceeds
      of a
      sale of some or all of the Option Shares being acquired upon the exercise of
      the
      Option, or (iv) by any combination of the methods of payment provided in clauses
      (i)-(iii).

    

    9.    Compliance
      with Laws and Regulations.
      The
      grant and exercise of the Options, and the Company’s obligation to sell and
      deliver stock hereunder, are subject to such approvals by any regulatory or
      governmental agency as may be required and shall comply with all relevant
      provisions of applicable Federal and state laws, rules and regulations,
      including, without limita-tion, the Securities Act of 1933, as amended, the
      Securities Exchange Act of 1934, as amended, state securities laws, the rules
      and regulations promul-gated thereunder, and the require-ments of any stock
      exchange or of any quotation association or organization upon which the Option
      Shares may then be listed or quoted, and shall be further subject to the
      approval of counsel for the Company with respect to such compliance. The Company
      may imprint any legends on the Option Shares restricting their subsequent sale
      or transfer that may be required by state or Federal law.

    

    Unless
      the Option Shares shall be duly registered under the Securities Exchange Act
      of
      1933 and registered, qualified or authorized under applicable state securities
      law, the Optionee, by accepting these Options, represents and warrants for
      himself and any other person or persons properly exercising these Options that
      any and all shares purchased hereunder shall be acquired for investment and
      not
      with the intention to sell or distribute such shares and agrees to deliver
      to
      the Company, upon request, a written representation that the shares being
      purchased are being acquired for investment and not with a present intention
      of
      sale or with a view to distribution, and a consent that the certificate
      representing such shares be endorsed to indicate such representation. The
      Company shall not be liable in the event it is unable to issue or sell shares
      of
      Common Stock or other securities to the Optionee if such issuance or sale would
      be unlawful, nor shall the Company be liable if the issuance or sale of shares
      of Common Stock or other securities to an Optionee is subsequently
      invalidated.

    

    10.   Withholding. The
      Company shall withhold all income or other taxes permitted or required to be
      withheld by applicable law and shall remit them to the appropriate taxing
      authority as provided in Section 6(e) of the Plan.

    

    11.   Employment
      Rights.
      Nothing
      contained in the Plan or in this Option Agreement shall confer upon the Optionee
      any right to be employed by, or to be continued in the employ of, the Company
      or
      of any of its subsidiaries or interfere in any way with the right of the Company
      or any subsidiary by whom such person may be employed to terminate his
      employment at any time.

    

    12.   Notice
      of Disposition.
      If
      these Options shall be incentive stock options the following shall apply:
      Optionee or his estate or legal representative shall immediately notify the
      Company in the event of any disposition of any kind by him of Option Shares
      acquired pursuant to these Options. If the disposition shall be a
“disqualifying” disposition within the meaning of Section 422 of the Internal
      Revenue Code of 1986, as amended, the Optionee or his estate or legal
      representation shall immediately pay any federal, state or local taxes owing
      by
      reason of the exercise or disposition and provide proof of payment to the
      Company.

    

    13.   Notices.
      Any
      notice to be given under the terms of the Options shall be addressed to the
      Company or to the Optionee at the addresses appearing on the first page of
      this
      Agreement, or at such other address as either party may hereafter designate
      in
      writing to the other.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    14.   Interpretation
      of this Agreement.
      Any
      dispute regarding the interpretation of this Agreement shall be resolved in
      accordance with the Plan and may be submitted by the Optionee or by the Company
      forthwith to the Committee for resolution, which shall review such dispute
      at
      the time of the next regular meeting of the Board or such Committee, or earlier
      at the Committee’s discretion. The decision of the Committee, as the case may
      be, with regard to such dispute shall be final and binding upon the Company
      and
      upon the Optionee.

    

    15.   Successors
      and Assigns.
      Except
      as otherwise provided herein, the provisions of this Agreement shall inure
      to
      the benefit of, and be binding upon, the successors and assigns of the Company
      and the administrators, heirs and legal representatives of the
      Optionee.

    

    16.   Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Kansas, without giving effect to the principles of conflicts of
      law.

    

    17.   Amendments.
      No
      provision of this Agreement shall be modified, amended, extended or waived
      except in writing signed by the parties hereto or as otherwise be permitted
      or
      con-templated by the Plan.

    

    

    REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Agreement to be duly executed by its duly authorized
      officer, and Optionee has executed this Agreement, all as of the date and year
      first above written.

    

    

    
      	 	
              MEDIWARE
                INFORMATION SYSTEMS, INC.

            
	 	 	 	 
	 	 	 	 
	 	
              By:

            	
                 

            	 
	 	
              Name:

            	
                 

            	 
	 	
              Title:

            	
                 

            	 
	 	 	 	 
	 	 	 	 
	 	
              Optionee

            	 	 
	 	 	 	 
	 	
                  

            	 
	 	 	 	 
	 	
              Print
                Name:

            	
                 

            	 

    

     

     

    6Exhibit
        10.59

      SECOND
        AMENDMENT

      TO
        AMENDED AND RESTATED CREDIT AGREEMENT

      

      THIS
        SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
        ("Second
        Amendment"), dated as of August 29, 2005, is made and entered into by and
        between DIODES
        INCORPORATED,
        a
        Delaware corporation ("Borrower"), and UNION
        BANK OF CALIFORNIA, N.A.,
        a
        national banking association ("Bank").

      

      RECITALS:

      

      A.
        Borrower and Bank are parties to that certain Amended and Restated Credit
        Agreement dated as of February 27, 2003, as amended by (i) that certain First
        Amendment dated as of July 6, 2004 and (ii) that certain extension letter
        dated
        May 26, 2005 (as so amended, the "Agreement"), pursuant to which Bank agreed
        to
        extend various credit facilities to Borrower in the amounts provided for
        therein.

      

      B.
        On May
        27, 2005, Bank issued, for the account of Borrower, and in favor of Banque
        Et
        Caisse D’Epargne De L’Etat, Luxembourg, as beneficiary, that certain Irrevocable
        Standby Letter of Credit, bearing no. 306S236359, in the original face amount
        of
        One Hundred Fifteen Thousand Five Hundred Euros (Euro 115,500) (as at any
        time
        amended, the “Existing Standby Letter of Credit”). The Existing Standby Letter
        of Credit has a current expiry date of May 30, 2006.

      

      C.
        Borrower has requested that Bank agree to (i) increase the amount of the
        Revolving Credit Commitment from Seven Million Five Hundred Thousand Dollars
        ($7,500,000) to Twenty Million Dollars ($20,000,000), (ii) extend the Revolving
        Credit Commitment Termination Date from August 29, 2005 to August 29, 2008,
        (iii) make a standby letter of credit sublimit of the Revolving Credit
        Commitment available to Borrower, which shall provide for the issuance by
        Bank,
        for the account of Borrower, of one or more irrevocable standby letters of
        credit in the aggregate face amount at any one time outstanding not to exceed
        Five Million Dollars ($5,000,000), and (iv) amend the Agreement in certain
        other
        respects. Bank is willing to so amend the Agreement, subject, however, to
        the
        terms and conditions of this Second Amendment.

      

      

      AGREEMENT:

      

      In
        consideration of the above recitals and of the mutual covenants and conditions
        contained herein, Borrower and Bank agree as follows:

      

      1. Defined
        Terms.
        Initially capitalized terms used herein which are not otherwise defined shall
        have the meanings assigned thereto in the Agreement.

      

      2. Amendments
        to Section 1 of the Agreement.

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

         

      

      (a)
        Section 1 of the Agreement is hereby amended by adding a definition of
“Acquisition”
        thereto
        in the appropriate alphabetical order, which shall read in full as
        follows:

      

      “’Acquisition’
        shall
        mean any
        transaction, or any series of related transactions, consummated after the
        effective date of this Agreement, by which Borrower or any of its Subsidiaries
        directly or indirectly (a) acquires any ongoing business or all or substantially
        all of the assets of any Person engaged in any ongoing business, whether
        through
        a purchase of assets, a merger or otherwise, (b) acquires control of the
        securities of a Person engaged in an ongoing business representing more than
        fifty percent (50%) of the ordinary voting power for the election of directors
        or other governing position if the business affairs of such Person are managed
        by a board of directors or other governing body or (c) acquires control of
        more
        than fifty percent (50%) of the ownership interest in any Person engaged
        in an
        ongoing business that is not managed by a board of directors or other governing
        body.”

      

      (b)
        The
        definition of “Capital
        Expenditures Maintenance Amount”
        appearing in Section 1 of the Agreement is hereby deleted in its
        entirety.

      

      (c)
        The
        definition of “Current
        Ratio”
        appearing in Section 1 of the Agreement is hereby amended to read in full
        as
        follows:

      

      “’Current
        Ratio’
        shall
        mean, as of the last day of any fiscal quarter, calculated for Borrower and
        its
        Subsidiaries (other
        than any
        Foreign Subsidiaries) on a consolidated basis, the ratio of (a) current assets
        as of such date, less intercompany Indebtedness, to (b) current liabilities
        as
        of such date, less intercompany Indebtedness, in each case as determined
        in
        accordance with GAAP. For the purpose of calculating current liabilities
        hereunder, the aggregate principal amount of those Revolving Loans outstanding
        under the Revolving Credit Commitment as of such date, the proceeds of which
        were paid as consideration in connection with any Permitted Acquisition,
        shall
        not be considered to be current liabilities.”

      

      (d)
        The
        definition of “Debt
        Service”
        appearing in Section 1 of the Agreement is hereby deleted in its
        entirety.

      

      (e)
        The
        definition of “Fixed
        Charge Coverage Ratio”
        appearing in Section 1 of the Agreement is hereby deleted in its
        entirety.

      

      (f)
        The
        definition of “Guarantor
        Loan”
        appearing in Section 1 of the Agreement is hereby amended to read in full
        as
        follows:

      

      “’Guarantor
        Loan’
        shall
        mean that certain term loan previously made by Bank to Guarantor in the original
        principal amount of Five Million Dollars ($5,000,000), which is evidenced
        by the
        Guarantor Note and covered by the terms and conditions of that certain Covenant
        Agreement dated August 29, 2005, by and between Guarantor and
        Bank.”

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

         

      

      (g)
        The
        definition of “Guarantor Note” appearing in Section 1 of the Agreement is hereby
        amended to read in full as follows:

      

      “’Guarantor
        Note’
        shall
        mean that certain replacement term note dated August 29, 2005, issued by
        Guarantor in favor of Bank in the original principal amount of Five Million
        Dollars ($5,000,000), together with any and all amendments, extensions,
        reissuances, renewals or replacements thereof.”

      

      (h)
        Section 1 of the Agreement is hereby further amended by adding a definition
        of
“Interest
        Expense”
        thereto
        in the appropriate alphabetical order, which shall read in full as
        follows:

      

      “’Interest
        Expense’
        shall
        mean, as of the last day of each fiscal quarter, the interest expense of
        Borrower and its Subsidiaries paid or payable during the four (4) consecutive
        fiscal quarters ended on such date.”

      

      (i)
        Section 1 of the Agreement is hereby further amended by adding a definition
        of
“Interest
        Expense Coverage Ratio”
        thereto
        in the appropriate alphabetical order, which shall read in full as
        follows:

      

      “’Interest
        Expense Coverage Ratio’
        shall
        mean, as of the date of calculation, calculated for Borrower and its
        Subsidiaries on a consolidated basis, the ratio of (a)
        (i)
        EBITDA for the applicable fiscal period minus (ii) the Capital Expenditures
        paid
        or payable during such applicable fiscal period minus (iii) federal and state
        income tax expense during such applicable fiscal period minus (iv) the aggregate
        amount of dividends declared or paid by Borrower and its Subsidiaries during
        such applicable fiscal period minus (v) the aggregate amount paid by Borrower
        and its Subsidiaries to their shareholders in respect of treasury stock during
        such applicable fiscal period to (b) Interest Expense for such applicable
        fiscal
        period.”

      

      (j)
        The
        definition of “Net
        Profit After Taxes”
        appearing in Section 1 of the Agreement is hereby amended to read in full
        as
        follows:

      

      “’Net
        Profit After Taxes’
        shall
        mean,
        for any
        fiscal period, the after-tax income of Borrower and its Subsidiaries for
        such
        fiscal period, as determined in accordance with GAAP. For the purposes of
        determining Borrower's compliance with Section 7.8 hereof, 'Net Profit After
        Taxes' shall not include any income adjustments required as a result of the
        recent GAAP pronouncement on goodwill.”

      

      (k)
        Section 1 of the Agreement is hereby further amended by adding a definition
        of
“Net
        Profit Before Taxes”
        thereto
        in the appropriate alphabetical order, which shall read in full as
        follows:

      

      “’Net
        Profit Before Taxes’
        shall
        mean,
        for any
        fiscal period, the pre-tax income of Borrower and its Subsidiaries for such
        fiscal period, as determined in accordance with GAAP. For the purposes of
        determining Borrower's compliance with Section 6.8 hereof, 'Net Profit Before
        Taxes' shall not include any income adjustments required as a result of the
        recent GAAP pronouncement on goodwill.”

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

         

      

      (l)
        Section 1 of the Agreement is hereby further amended by adding a definition
        of
“Permitted
        Acquisition”
        thereto
        in the appropriate alphabetical order, which shall read in full as
        follows:

      

      "’Permitted
        Acquisition’
        shall
        mean any Acquisition by Borrower or any of its Subsidiaries (as applicable,
        the
‘acquiror’) of another Person, or the business or assets of such Person, engaged
        in a line of business comparable or complementary to the Business (the
‘target’), provided that: (a) no Default or Event of Default shall exist at the
        time of such Acquisition or occur after giving effect to such Acquisition;
        (b)
        such Acquisition shall have been approved by the board of directors or the
        owners of the target; (c) the pro-forma balance sheets as of the date of
        such
        Acquisition (including pro-forma financial covenants) provided by Borrower
        to
        Bank shall have demonstrated that, after giving effect to such Acquisition,
        Borrower would be and would remain in compliance with the financial covenants
        set forth in Sections 6.5, 6.6, 6.7 and 6.8, inclusive, of this Agreement;
        (d)
        if the aggregate cash consideration paid by acquiror in connection with any
        single Acquisition exceeds Ten Million Dollars ($10,000,000) or if the aggregate
        cash and non-cash consideration paid by acquiror in connection with any single
        Acquisition exceeds Thirty Million Dollars ($30,000,000), Borrower shall
        have
        delivered to Bank, no later than fifteen (15) days prior to the effective
        date
        of such Acquisition, a pro-forma compliance certificate of Borrower’s chief
        financial officer or controller, demonstrating that after giving effect to
        such
        Acquisition, Borrower would be and would remain in compliance with the financial
        covenants set forth in Sections 6.5, 6.6, 6.7 and 6.8, inclusive, of this
        Agreement; and (e) after giving effect to such Acquisition, the Leverage
        Ratio,
        as determined on a pro-forma basis, shall not be greater than 2.0 to
        1.0.”

      

      (m)
        Paragraph (d) contained in the definition of “Permitted
        Indebtedness”
        appearing in Section 1 of the Agreement is hereby amended to read in full
        as
        follows:

      

      “(d)
        Indebtedness
        of Borrower or any of its Subsidiaries incurred to finance the purchase of
        equipment constituting a Capital Expenditure;”

      

      (l)
        Paragraph (g) contained in the definition of “Permitted
        Indebtedness”
        appearing in Section 1 of the Agreement is hereby amended to read in full
        as
        follows:

      

      “(g)
        lease obligations
        of
        Borrower or any of its Subsidiaries;”

      

      (n)
        Section 1 of the Agreement is hereby further amended by adding a definition
        of
“Second
        Amendment”
        thereto
        in the appropriate alphabetical order, which shall read in full as
        follows:

      

      “’Second
        Amendment’
        shall
        mean that certain Second Amendment dated as of August 29, 2005, by and between
        Borrower and Bank.”

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

         

      

      (o)
        Section 1 of the Agreement is hereby further amended by adding the definitions
        of “Standby
        Letter of Credit Agreements”
        and
“Standby
        Letter of Credit Agreement”
        thereto
        in the appropriate alphabetical order, which shall read in full as
        follows:

      

      “’Standby
        Letter of Credit Agreements’
        and
‘Standby
        Letter of Credit Agreement’
        shall
        mean, respectively,
        (a) the irrevocable standby letter of credit applications and agreements,
        each
        on Bank’s standard form therefor, executed by Borrower in connection with the
        issuance by Bank of the Standby Letters of Credit for the account of Borrower,
        and (b) any one of such Standby Letter of Credit Agreements.”

      

      (p)
        Section 1 of the Agreement is hereby further amended by adding the definition
        of
“Standby
        Letter of Credit Sublimit”
        thereto
        in the appropriate alphabetical order, which shall read in full as
        follows:

      

      “‘Standby
        Letter of Credit Sublimit’
        shall
        have the meaning assigned to such term in Section 2.1A hereof.”

      

      (q)
        Section 1 of the Agreement is hereby further amended by adding the definitions
        of “Standby
        Letters of Credit”
        and
“Standby
        Letter of Credit”
        thereto
        in the appropriate alphabetical order, which shall read in full as
        follows:

      

      “’Standby
        Letters of Credit’
        and
‘Standby
        Letter of Credit’
        shall
        have the meanings assigned to those terms in Section 2.1A hereof.”

      

      3. Amendments
        to Section 2 of the Agreement.

      

      (a)
        Section 2.1 of the Agreement is hereby amended by substituting the date “August
        29, 2008” for the date “August 29, 2005” appearing in the second line thereof.
        Accordingly, from and after the effective date of this Second Amendment,
        the
        Revolving Credit Commitment Termination Date shall be August 29,
        2008.

      

      (b)
        Section 2.1 of the Agreement is hereby further amended by substituting the
        amount “Twenty Million Dollars ($20,000,000)” for the amount “Seven Million Five
        Hundred Thousand Dollars ($7,500,000)” appearing in the seventh and eighth lines
        thereof.

      

      (c)
        Section 2 of the Agreement is hereby further amended by adding a new Section
        2.1A thereto, which shall read in full as follows:

      

      “2.1A
        Standby Letter of Credit Sublimit.
        Subject
        to the terms and conditions of this Agreement, and as a sublimit of the
        Revolving Credit Commitment, during the period from the effective date of
        the
        Second Amendment to this Agreement to but excluding the Revolving Credit
        Commitment Termination Date, provided that no Event of Default then has occurred
        and is continuing, and no event has occurred which, with the giving of notice
        or
        the lapse of time, or both, would become an Event of Default, Bank
        shall issue, for the account of Borrower, one or more irrevocable standby
        letters of credit (collectively, the ‘Standby Letters of Credit,’ and
        individually, a ‘Standby Letter of Credit’) upon Borrower’s request. Borrower
        and Bank specifically agree that the sum of (a) the aggregate amount available
        to be drawn under all outstanding Standby Letters of Credit plus (b) the
        aggregate amount of unpaid reimbursement obligations under drawn Standby
        Letters
        of Credit shall not exceed Five Million Dollars ($5,000,000) at any one time
        (the ‘Standby Letter of Credit Sublimit’) and shall reduce, Dollar for Dollar,
        the amount available to be borrowed under the Revolving Credit Commitment.
        Each
        Standby Letter of Credit shall be issued for any purpose acceptable to Bank,
        in
        its sole and absolute discretion. Each Standby Letter of Credit shall be
        drawn
        on such terms and conditions as may be acceptable to Bank and shall be governed
        by the terms of (and Borrower agrees to execute) Bank's standard form Standby
        Letter of Credit Agreement in connection therewith. No Standby Letter of
        Credit
        shall have an expiration date more than two (2) years from its date of issuance
        or shall expire later than thirty (30) days after the Revolving Credit
        Commitment Termination Date. Notwithstanding anything to the contrary contained
        hereinabove, the Existing Standby Letter of Credit shall be treated as a
        utilization of the Standby Letter of Credit Sublimit and the Revolving Credit
        Commitment.”

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

         

      

      (d)
        Section 2.4 of the Agreement is hereby amended to read in full as
        follows:

      

      “2.4
        Purposes of the Credit.

      

      “(a)
        The
        proceeds of the Revolving Loans shall be used for Borrower’s domestic working
        capital purposes and in connection with Permitted Acquisitions. Without limiting
        the generality of the foregoing sentence, Borrower shall not use the proceeds
        of
        any Revolving Loan directly or indirectly to finance the overseas operations
        or
        Capital Expenditures of Borrower or any of its Subsidiaries or to repay or
        prepay any Subordinated Indebtedness.

      

      “(b)
        Each
        Standby Letter of Credit shall be issued by Bank for a purpose permitted
        by
        Section 2.1A hereinabove.”

      

      (e)
        Section 2.11 of the Agreement, which relates to the Revolving Credit Commitment
        Unused Fee, is hereby deleted in its entirety.

      

      4. Amendments
        to Section 6 of the Agreement.

      

      (a)
        Section 6.4(a) of the Agreement is hereby amended to read in full as
        follows:

      

      “(a)
        Quarterly
        Financial Statements.
        Within
        forty-five (45) days after the close of each fiscal quarter (or such later
        date,
        in the event that Borrower furnishes Bank, on or before such due date, with
        a
        copy of the written approval of the Securities and Exchange Commission, showing
        that the Securities and Exchange Commission has approved the filing thereof
        on
        or before such later date), except for the last fiscal quarter of each fiscal
        year, a copy of the unaudited consolidated Financial Statements of Borrower
        and
        its Subsidiaries, on Form 10-Q, as of the close of such fiscal quarter, prepared
        in accordance with GAAP (except that such unaudited Financial Statements
        need
        not include footnotes and other informational disclosures);”

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

         

      

      (b)
        Section 6.4(b) of the Agreement is hereby amended to read in full as
        follows:

      

      “(b)
        Annual
        Financial Statements.
        Within
        one hundred twenty (120) days after the close of each fiscal year of Borrower
        (or such later date, in the event that Borrower furnishes Bank, on or before
        such due date, with a copy of the written approval of the Securities and
        Exchange Commission, showing that the Securities and Exchange Commission
        has
        approved the filing thereof on or before such later date), a copy of the
        consolidated Financial Statements of Borrower and its Subsidiaries, on Form
        10-K, as of the close of such fiscal year, prepared on an audited basis in
        accordance with GAAP by an independent certified public accountant selected
        by
        Borrower and reasonably satisfactory to Bank;”

      

      (c)
        Section 6.4 of the Agreement is hereby further amended by deleting the word
        “and” appearing at the end of subparagraph (d), relettering subparagraph (e) as
        subparagraph (f), and adding a new subparagraph (e) thereto, which shall
        read in
        full as follows:

      

      “(e)
        Within one hundred twenty (120) days after the close of each fiscal year
        of
        Borrower, consolidated financial projections for Borrower and its Subsidiaries
        for the following fiscal year, prepared by Borrower in form and substance
        acceptable to Bank; and”

      

      (d)
        Section 6.5 of the Agreement is hereby amended to read in full as
        follows:

      

      “6.5
        Leverage Ratio.
        Borrower and its Subsidiaries shall maintain a Leverage Ratio of not greater
        than 2.25 to 1.0 as of the last day of each fiscal quarter.”

      

      (e)
        Section 6.6 of the Agreement is hereby amended to read in full as
        follows:

      

      “6.6
        Interest Expense Coverage Ratio.
        Borrower and its Subsidiaries shall maintain an Interest Expense Coverage
        Ratio
        of not less than 2.0 to 1.0 as of the last day of each fiscal
        quarter.”

      

      (f)
        Section 6.7 of the Agreement is hereby amended to read in full as
        follows:

      

      “6.7
        Current
        Ratio.
        Borrower and its Subsidiaries (other than any Foreign Subsidiaries) shall
        maintain a Current Ratio of not less than 1.0 to 1.0 as of the last day of
        each
        fiscal quarter.”

      

      (g)
        Section 6.8 of the Agreement is hereby amended to read in full as
        follows:

      

      “6.8
        Net Profit Before Taxes.
        As of
        the last day of each fiscal quarter, Borrower and its Subsidiaries shall
        achieve
        average Net Profit Before Taxes, for the two (2) consecutive fiscal quarters
        ended on such date, of not less than One Dollar ($1).”

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

         

      

      5. Amendments
        to Section 7 of the Agreement.

      

      (a)
        Section 7.5 of the Agreement is hereby amended to read in full as
        follows:

      

      “7.5
        Liquidation or Merger.
        Without
        the prior written consent of Bank, which consent shall not be unreasonably
        withheld, Borrower shall not, and shall not permit any of its Subsidiaries
        to,
        liquidate, dissolve or enter into any consolidation, merger, partnership
        or
        other combination, or purchase or lease all or the greater part of the assets
        or
        business of another Person; provided, however, that nothing contained herein
        shall be deemed to prohibit or otherwise restrict Borrower or any of its
        Subsidiaries from making a Permitted Acquisition.”

      

      (b)
        Section 7.7 of the Agreement is hereby amended to read in full as
        follows:

      

      “7.7
        Investments.
        Borrower shall not purchase the debt or equity of another Person except (a)
        for
        savings accounts and certificates of deposit of Bank and (b) for direct U.S.
        Government obligations and commercial paper issued by corporations with the
        top
        ratings of Moody's Investors Service, Inc. or the Standard & Poor's Ratings
        Division of McGraw-Hill, Inc., provided that all such permitted investments
        shall mature within one (1) year of purchase, and (c) in connection with
        Permitted Acquisitions.”

      

      (c)
        Section 7.8 of the Agreement is hereby amended to read in full as
        follows:

      

      “7.8
        Payment of Dividends.
        Except
        for dividends paid by foreign Subsidiaries of Borrower to Borrower and the
        other
        shareholders of Subsidiaries, Borrower shall not declare or pay, or permit
        any
        of its Subsidiaries to declare or pay, directly or indirectly, during any
        fiscal
        year, any dividends, in cash, return of capital or any other form (other
        than
        dividends payable in its own common stock), or authorize or make any other
        distribution with respect to any of its stock now or hereafter outstanding,
        if
        the aggregate amount of such dividends and distributions so declared, paid,
        made
        or authorized during such fiscal year shall exceed an amount equal to fifty
        percent (50%) of Net Profit After Taxes for such fiscal year.”

      

      (d)
        Section 7.10 of the Agreement is hereby amended to read in full as
        follows:

      

      “7.10
        [Intentionally Deleted].”

      

      (e)
        Section 7.12 of the Agreement is hereby deleted in its entirety.

      

      6. Effectiveness
        of this Second Amendment.
        This
        Second Amendment shall become effective as of the date hereof when, and only
        when, Bank shall have received all of the following, in form and substance
        satisfactory to Bank: 

      

      (a) A
        counterpart of this Second Amendment, duly executed by Borrower and acknowledged
        by Guarantor where indicated hereinbelow;

      

      (b) A
        replacement Revolving Note, on Bank’s standard form or otherwise in form and
        substance acceptable to Bank and its counsel, duly executed by
        Borrower;

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

         

      

      (c) An
        Authorization to Disburse, on Bank’s standard form, duly executed by Borrower,
        authorizing Bank to disburse the proceeds of Revolving Loans under the
        replacement Revolving Note issued pursuant to this Second Amendment as provided
        for in the Agreement, as amended hereby;

      

      (d) A
        legal
        fee in connection with the preparation of this Second Amendment in the sum
        of
        One Thousand Five Hundred Dollars ($1,500); and

      

      (e) Such
        other documents, instruments or agreements as Bank may reasonably deem
        necessary.

      

      7. Ratification.

      

      (a) Except
        as
        specifically amended hereinabove, the Agreement shall remain in full force
        and
        effect and is hereby ratified and confirmed; and

      

      (b) Upon
        the
        effectiveness of this Second Amendment, each reference in the Agreement to
        "this
        Agreement", "hereunder", "herein", "hereof" or words of like import referring
        to
        the Agreement shall mean and be a reference to the Agreement as amended by
        this
        Second Amendment, and each reference in the Agreement to the “Revolving Note” or
        words of like import referring to the Revolving Note shall mean and be a
        reference to the replacement Revolving Note issued by Borrower in favor of
        Bank
        pursuant to this Second Amendment.

      

      8. Representations
        and Warranties.
        Borrower represents and warrants as follows:

      

      (a) Each
        of
        the representations and warranties contained in Section 5 of the Agreement,
        as
        amended hereby, is hereby reaffirmed as of the date hereof, each as if set
        forth
        herein;

      

      (b) The
        execution, delivery and performance of this Second Amendment and the execution
        and delivery of the replacement Revolving Note provided for herein are within
        Borrower's corporate powers, have been duly authorized by all necessary
        corporate action, have received all necessary approvals, if any, and do not
        contravene any law or any contractual restriction binding on
        Borrower;

      

      (c) This
        Second Amendment is, and the replacement Revolving Note when delivered for
        value
        received will be, the legal, valid and binding obligations of Borrower,
        enforceable against Borrower in accordance with their terms; and

      

      (d) No
        event
        has occurred and is continuing or would result from this Second Amendment
        which
        constitutes an Event of Default under the Agreement, or would constitute
        an
        Event of Default but for the requirement that notice be given or time elapse
        or
        both.

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

         

      

      9. Governing
        Law.
        This
        Second Amendment shall be deemed a contract under and subject to, and shall
        be
        construed for all purposes and in accordance with, the laws of the State
        of
        California.

      

      10. Counterparts.
        This
        Second Amendment may be executed in two or more counterparts, each of which
        shall be deemed an original and all of which together shall constitute one
        and
        the same instrument.

      

      WITNESS
        the due
        execution hereof as of the date first above written.

      

      “Borrower”

       

      DIODES
        INCORPORATED

       

      By:
        /s/ Carl C. Wertz

      Carl
        Wertz

      Chief
        Financial Officer

      

      

      “Bank”

       

      UNION
        BANK OF CALIFORNIA, N.A.

       

      By:
        /s/ John Kase

      Title:
        Vice President

      

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      

      Acknowledgment
        of Guarantor

      

      The
        undersigned, as Guarantor pursuant to that certain Continuing Guaranty dated
        as
        of December 1, 2000 (the "Guaranty"), hereby consents to the foregoing Second
        Amendment and acknowledges and agrees, without in any manner limiting or
        qualifying its obligations under the Guaranty, that payment of the Obligations
        (as such term is defined in the Guaranty) and the punctual and faithful
        performance, keeping, observance and fulfillment by Borrower of all of the
        agreements, conditions, covenants and obligations of Borrower contained in
        the
        Agreement are and continue to be unconditionally guaranteed by the undersigned
        pursuant to the Guaranty.

      

      

      FABTECH,
        INC.

      

      By:
        /s/ MaryJo Parsons

      Title:
        Secretary

      

      
        
           

        

        
          11

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