Document:

Exhibit
        10.60

      

      

      August
        29, 2005

      

      

      FabTech,
        Inc.

      777
        N.W.
        Blue Parkway, Suite 350

      Lee’s
        Summit, Missouri 64086-5709

      

      Attention:
        MaryJo Parsons

      Secretary

      

      Dear
        Ms.
        Parsons:

      

      This
        Covenant Agreement (this “Agreement”) is entered into as of the date set forth
        above between Union Bank of California, N.A., a national banking association
        (“Bank”), and FabTech, Inc., a Delaware corporation (“Borrower”), with respect
        to each and every extension of credit (whether one or more, collectively
        referred to as the “Loan”) from Bank to Borrower.

      

      The
        Loan
        is evidenced by one or more promissory notes or other evidences of indebtedness,
        including each amendment, extension, renewal or replacement thereof, which
        are
        incorporated herein by this reference (whether one or more, collectively
        referred to as the “Note”). Any financial statement required by this Agreement
        must be prepared in accordance with generally accepted accounting principles
        and
        in a form satisfactory to Bank. In consideration of the Loan, Bank and Borrower
        agree to the following terms and conditions:

      

      Guaranty
        Requirements

      Diodes
        Incorporated, a Delaware corporation (“Guarantor”), previously executed and
        delivered to Bank that certain Continuing Guaranty dated as of April 9, 2004
        (“Guaranty”), on Bank’s standard form, in the principal amount of Five Million
        Dollars ($5,000,000) (exclusive of accrued interest and Bank’s expenses, for
        which Guarantor is also be obligated). Pursuant to the Guaranty, Guarantor
        has
        unconditionally guaranteed to pay the Obligations (as such term is defined
        in
        the Guaranty) of Borrower to Bank.

      

      Borrower
        Collateral

      Borrower’s
        obligations and liabilities to Bank under the Note, this Agreement and any
        other
        document, instrument or agreement executed by Borrower is secured by a first
        priority security interest in all or substantially all of Borrower’s personal
        property, pursuant to the terms and conditions of a Security Agreement, on
        Bank’s standard form, executed by Borrower in favor of Bank. Borrower previously
        authorized Bank to file a UCC-1 financing statement describing such collateral
        in the office of the Secretary of State of the State of Delaware or any other
        jurisdiction desired by Bank. Borrower shall execute and deliver to Bank
        such
        other documents, instruments and agreements as Bank may reasonably require
        in
        order to effect fully the purposes of this Agreement.

      

      
        
           

        

        
           

          
            

          

        

        
          
            FabTech,
              Inc.

            August
              29, 2005

            Page
              2

          

        

         

         

      

      Guarantor
        Collateral

      Guarantor’s
        obligations and liabilities to Bank under the Guaranty and any other document,
        instrument or agreement executed by Guarantor are secured by a first priority
        security interest in all or substantially all of Guarantor’s personal property,
        pursuant to the terms and conditions of a Security Agreement, on Bank’s standard
        form, executed by Guarantor in favor of Bank. By executing the Security
        Agreement, Guarantor authorized Bank to file a UCC-1 financing statement
        describing such collateral in the office of the Secretary of State of the
        State
        of Delaware or any other jurisdiction desired by Bank. Borrower shall cause
        Guarantor to execute and deliver to Bank such other documents, instruments
        and
        agreements as Bank may reasonably require in order to effect fully the purposes
        of this Agreement.

      

      Cross-Default
        Provision

      The
        occurrence of any Event of Default under the terms and conditions of the
        Amended
        and Restated Credit Agreement shall constitute a default under this Agreement
        and the Note. As used herein, the term “Amended and Restated Credit Agreement”
        shall mean that certain Amended and Restated Credit Agreement dated as of
        February 27, 2003, by and between Guarantor and Bank, as amended and as at
        any
        time further amended, supplemented, extended, restated or renewed.

      

      Financial
        Information

      Borrower
        shall provide Bank with such financial statements, lists of property and
        accounts, budgets, forecasts, reports and other financial information as
        Bank
        may from time to time request.

      

      Any
        provision contained within this Agreement that is in conflict with any provision
        of any prior agreement between Bank and Borrower or Bank and Guarantor shall
        supersede such provision of such prior agreement. This Agreement shall replace
        and supersede that certain Covenant Agreement dated July 6, 2004, by and
        between
        Borrower and Bank.

      
        
           

        

        
           

          
            

          

        

        
           

          
            
              FabTech,
                Inc.

              August
                29, 2005

              Page
                3 

            

          

        

      

      

      If
        Borrower is in agreement with the foregoing terms and conditions, please
        sign
        and date the enclosed counterpart of this Agreement where indicated below
        and
        return same to the undersigned as soon as possible.

      

      Sincerely,

      

      “Bank”

      

      UNION
        BANK OF CALIFORNIA, N.A.

      

      By: /s/
        John Kase

      John
        C.
        Kase

      Vice
        President

      

      

      Address
        where notices to Bank are to be sent:

      

      Union
        Bank of California, N.A.

      Commercial
        Banking Group--

      Great
        Los
        Angeles Division

      445
        South
        Figueroa Street, 10th Floor

      Angeles,
        California 90071

      Attention:
        John C. Kase

      Vice
        President

      Telephone
        No.: (213) 236-7329

      Fax
        No.:
        (213) 236-7635

      

      

      Accepted
        and Agreed

      as
        of
        August 29, 2005:

      

      “Borrower”

      

      FABTECH,
        INC.

      

      By:
        /s/ MaryJo Parsons

      

      Title:
        Secretary

      

      Printed
        Name: MaryJo Parsons

      
        
           

        

        
           

          
            

          

        

        
           

          
            
              FabTech,
                Inc.

              August
                29, 2005

              Page
                4

            

          

        

      

      

      Address
        where notices to Borrower are to be sent:

      

      FabTech,
        Inc.

      777
        N.W.
        Blue Parkway, Suite 350

      Lee’s
        Summit, Missouri 64086-5709

      Attention:
        MaryJo Parsons

      Secretary

      Telephone
        No.: (816) 251-8800

      Fax
        No.:
        (816) 251-8850Exhibit
        10.61

      

      REVOLVING
        NOTE

      

      
        	
                Borrower's
                  Name:

                 

                Diodes
                  Incorporated

              
	 	 	 
	
                Borrower's
                  Address:

                 

                3050
                  East Hillcrest Drive

                Westlake
                  Village, California 91362-3154

              	
                Office:

                 

                30361

              	
                Loan
                  Number:

                0080000000

              
	 	
                Revolving
                  Credit Commitment Termination Date:

                 

                August
                  29, 2008

              	
                Amount:

                 

                $20,000,000

              

      

       

      
        	Westlake Village, California 	
                $20,000,000

              	
                 August
                  29,
                  2005

              

      

       

      FOR
        VALUE RECEIVED,
        on
        August 29, 2008 (the “Revolving Credit Commitment Termination Date”), the
        undersigned ("Borrower") promises to pay to the order of Union Bank of
        California, N.A., a national banking association ("Bank"), as indicated below,
        the principal sum of Twenty Million Dollars ($20,000,000), or so much thereof
        as
        is disbursed, together with interest on the balance of such principal from
        time
        to time outstanding, at the per annum rate or rates and at the times set
        forth
        below. This Revolving Note (this "Note") is the replacement Revolving Note
        referred to in the Amended and Restated Credit Agreement (as such term is
        defined hereinbelow) and is governed by the terms and conditions thereof.
        Initially capitalized terms used herein which are not otherwise defined shall
        have the meanings assigned to such terms in the Amended and Restated Credit
        Agreement.

      

      1. INTEREST
        PAYMENTS.
        Borrower
        shall pay interest on the outstanding principal amount hereof on the first
        day
        of each month, commencing September 1, 2005. Should interest not be paid
        when
        due, it shall become part of the principal and bear interest as herein provided.
        All computations of interest under this Note shall be made on the basis of
        a
        year of 360 days, for actual days elapsed.

      

      (a) Base
        Interest Rate.
        At
        Borrower’s option, amounts outstanding hereunder in minimum amounts of at least
        $100,000 shall bear interest at a rate, based on an index selected by Borrower,
        equal to Bank's LIBOR Rate for the Interest Period selected by Borrower plus
        one
        and fifteen one-hundredths percent (1.15%).

      

      The
        Base
        Interest Rate may not be changed, altered or otherwise modified until the
        expiration of the Interest Period selected by Borrower. The exercise of interest
        rate options by Borrower shall be as recorded in Bank's records, which records
        shall be prima facie
        evidence
        of the amount borrowed at the Base Interest Rate and the interest rate;
        provided, however, that failure of Bank to make any such notation in its
        records
        shall not discharge Borrower from its obligations to repay in full with interest
        all amounts borrowed. In no event shall any Interest Period extend beyond
        the
        Revolving Credit Commitment Termination Date.

      

      
        
           

        

        
          1

          
            

          

        

        
           

        

         

      

      To
        exercise this option, Borrower may, from time to time with respect to principal
        outstanding on which a Base Interest Rate is not accruing, and on the expiration
        of any Interest Period with respect to principal outstanding on which a Base
        Interest Rate has been accruing, select an index offered by Bank for a Base
        Interest Rate Loan and an Interest Period by telephoning an authorized lending
        officer of Bank located at the banking office identified below prior to 10:00
        a.m., Pacific time, on any Business Day and advising that officer of the
        selected index, the Interest Period and the Origination Date selected (which
        Origination Date, for a Base Interest Rate Loan based on the LIBOR Rate,
        shall
        follow the date of such selection by no more than two (2) Business
        Days).

      

      Bank
        will
        mail a written confirmation of the terms of the selection to Borrower promptly
        after the selection is made. Failure to send such confirmation shall not
        affect
        Bank's rights to collect interest at the rate selected. If, on the date of
        the
        selection, the index selected is unavailable for any reason, the selection
        shall
        be void. Bank reserves the right to fund the principal from any source of
        funds
        notwithstanding any Base Interest Rate selected by Borrower.

      

      (b) Variable
        Interest Rate.
        All
        principal outstanding hereunder which is not bearing interest at a Base Interest
        Rate shall bear interest at a rate per annum equal to the Reference Rate,
        which
        rate shall vary as and when the Reference Rate changes.

      

      If
        any
        interest rate defined in this Note ceases to be available from Bank for any
        reason, then said interest rate shall be replaced by the rate then offered
        by
        Bank, which, in the sole discretion of Bank, most closely approximates the
        unavailable rate.

      

      At
        any
        time prior to the Revolving Credit Commitment Termination Date, subject to
        the
        provisions of paragraph 4 of this Note, Borrower may borrow, repay and reborrow
        hereon so long as the total outstanding at any one time does not exceed the
        principal amount of this Note. Borrower shall pay all amounts due under this
        Note in lawful money of the United States at Bank's San Fernando Valley
        Commercial Banking Office, or such other office as may be designated by Bank
        from time to time.

      

      2. LATE
        PAYMENTS.
        If any
        payment required by the terms of this Note shall remain unpaid ten days after
        same is due, at the option of Bank, Borrower shall pay a fee of $100 to
        Bank.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

         

      

      3. INTEREST
        RATE FOLLOWING DEFAULT.
        In the
        event of default, at the option of Bank, and, to the extent permitted by
        law,
        interest shall be payable on the outstanding principal under this Note at
        a per
        annum rate equal to five percent (5%) in excess of the interest rate specified
        in paragraph 1.b above, calculated from the date of default until all amounts
        payable under this Note are paid in full.

      

      4. PREPAYMENT

      

      (a) Amounts
        outstanding under this Note bearing interest at a rate based on the Reference
        Rate may be prepaid in whole or in part at any time, without penalty or premium.
        Borrower may prepay amounts outstanding under this Note bearing interest
        at a
        Base Interest Rate in whole or in part provided Borrower has given Bank not
        less
        than five (5) Business Days’ prior written notice of Borrower’s intention to
        make such prepayment and pays to Bank the prepayment fee due as a result.
        The
        prepayment fee shall also be paid, if Bank, for any other reason, including
        acceleration or foreclosure, receives all or any portion of principal bearing
        interest at a Base Interest Rate prior to its scheduled payment date. The
        prepayment fee shall be an amount equal to the present value of the product
        of:
        (i) the difference (but not less than zero) between (a) the Base Interest
        Rate
        applicable to the principal amount which is being prepaid, and (b) the return
        which Bank could obtain if it used the amount of such prepayment of principal
        to
        purchase at bid price regularly quoted securities issued by the United States
        having a maturity date most closely coinciding with the relevant Base Rate
        Maturity Date and such securities were held by Bank until the relevant Base
        Rate
        Maturity Date ("Yield Rate"); (ii) a fraction, the numerator of which is
        the
        number of days in the period between the date of prepayment and the relevant
        Base Rate Maturity Date and the denominator of which is 360; and (iii) the
        amount of the principal so prepaid (except in the event that principal payments
        are required and have been made as scheduled under the terms of the Base
        Interest Rate Loan being prepaid, then an amount equal to the lesser of (A)
        the
        amount prepaid or (B) 50% of the sum of (1) the amount prepaid and (2) the
        amount of principal scheduled under the terms of the Base Interest Rate Loan
        being prepaid to be outstanding at the relevant Base Rate Maturity Date).
        Present value under this Note is determined by discounting the above product
        to
        present value using the Yield Rate as the annual discount factor.

      

      (b) In
        no
        event shall Bank be obligated to make any payment or refund to Borrower,
        nor
        shall Borrower be entitled to any setoff or other claim against Bank, should
        the
        return which Bank could obtain under this prepayment formula exceed the interest
        that Bank would have received if no prepayment had occurred. All prepayments
        shall include payment of accrued interest on the principal amount so prepaid
        and
        shall be applied to payment of interest before application to principal.
        A
        determination by Bank as to the prepayment fee amount, if any, shall be
        conclusive.

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

         

      

      (c) Bank
        shall provide Borrower a statement of the amount payable on account of
        prepayment. Borrower acknowledges that (i) Bank establishes a Base Interest
        Rate
        upon the understanding that it apply to the Base Interest Rate Loan for the
        entire Interest Period, and (ii) Bank would not lend to Borrower without
        Borrower’s express agreement to pay Bank the prepayment fee described
        above.

      

      Initial
        Here: _/s/ CW

      

      5. DEFAULT
        AND ACCELERATION OF TIME FOR PAYMENT.
        Default
        shall mean the occurrence of an Event of Default under and as defined in
        the
        Amended and Restated Credit Agreement. Upon the occurrence of any such Event
        of
        Default, Bank, in its discretion, may cease to advance funds hereunder and
        may
        declare any and all obligations under this Note immediately due and payable;
        provided, however, that upon the occurrence of an Event of Default under
        subsection (d), (e) or (f) of Section 8.1 of the Amended and Restated Credit
        Agreement, all principal and interest hereunder shall automatically become
        immediately due and payable.

      

      6. ADDITIONAL
        AGREEMENTS OF BORROWER.
        If any
        amounts owing under this Note are not paid when due, Borrower promises to
        pay
        all costs and expenses, including reasonable attorneys' fees, incurred by
        Bank
        in the collection or enforcement of this Note. Borrower and any endorsers
        of
        this Note, for the maximum period of time and the full extent permitted by
        law,
        (a) waive diligence, presentment, demand, notice of nonpayment, protest,
        notice
        of protest, and notice of every kind; (b) waive the right to assert the defense
        of any statute of limitations to any debt or obligation hereunder; and (c)
        consent to renewals and extensions of time for the payment of any amounts
        due
        under this Note. If this Note is signed by more than one party, the term
        "Borrower" includes each of the undersigned and any successors in interest
        thereof; all of whose liability shall be joint and several. The receipt of
        any
        check or other item of payment by Bank, at its option, shall not be considered
        a
        payment on account until such check or other item of payment is honored when
        presented for payment at the drawee Bank. Bank may delay the credit of such
        payment based upon Bank's schedule of funds availability, and interest under
        this Note shall accrue until the funds are deemed collected. In any action
        brought under or arising out of this Note, Borrower and any Obligor, including
        their successors and assigns, hereby consent to the jurisdiction of any
        competent court within the State of California, as provided in any alternative
        dispute resolution agreement executed between Borrower and Bank, and consent
        to
        service of process by any means authorized by said state’s law. The term "Bank"
        includes, without limitation, any holder of this Note. This Note shall be
        construed in accordance with and governed by the laws of the State of
        California. This Note hereby incorporates any alternative dispute resolution
        agreement previously, concurrently or hereafter executed between Borrower
        and
        Bank.

      

      7. CHANGE
        IN CIRCUMSTANCES

      

      (a) Inability
        to Determine Rates.
        If, on
        or before the first day of any Interest Period for any Base Interest Rate
        Loan,
        Bank determines that the Base Interest Rate for such Interest Period cannot
        be
        adequately and reasonably determined due to the unavailability of funds in
        or
        other circumstances affecting the London interbank market, or the certificate
        of
        deposit market, as the case may be, which determination by Bank shall be
        conclusive and binding upon Borrower, Bank shall immediately give notice
        thereof
        to Borrower. After the giving of any such notice and until Bank shall otherwise
        notify Borrower that the circumstances giving rise to such condition no longer
        exist, Borrower's right to request, and Bank's obligation to offer, a Base
        Interest Rate Loan shall be suspended. Any Base Interest Rate Loan outstanding
        at the commencement of any such suspension which affects Base Interest Rate
        Loans of that type, shall be converted at the end of the then current Interest
        Period for that loan to a Reference Rate Loan unless such suspension has
        then
        ended.

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

         

      

      (b) Illegality.
        If,
        after the date of this Note, the adoption of any applicable law, rule or
        regulation, or any change therein, or change in the interpretation or
        administration thereof by any governmental authority, central bank, comparable
        agency or other Person charged with the interpretation or administration
        thereof, or compliance by Bank with any request or directive (whether or
        not
        having the force of law) of any such authority (a "Change of Law") shall
        make it
        unlawful or impossible for Bank to make or maintain a Base Interest Rate
        Loan,
        Bank shall immediately notify Borrower of such Change of Law. After Borrower's
        receipt of such notice, Borrower's right to select, and Bank's obligation
        to
        offer, a Base Interest Rate Loan shall be terminated, and the undersigned
        shall
        (i) at the end of the current Interest Period for any Base Interest Rate
        Loan
        then outstanding, convert such loan to a Reference Rate Loan, or (ii)
        immediately repay or convert any Base Interest Rate Loan then outstanding
        if
        Bank shall notify Borrower that Bank may not lawfully continue to fund and
        maintain such Base Interest Rate Loan.

      

      (c) Increased
        Costs.
        If,
        after the date of this Note, any Change of Law:

      

      (i) shall
        subject Bank to any tax, duty or other charge with respect to a Base Interest
        Rate Loan or its obligation to make such Base Interest Rate Loan, or shall
        change the basis of taxation of payments by Borrower to Bank on such Base
        Interest Rate Loan or in respect to such Base Interest Rate Loan under this
        Note
        (except for changes in the rate of taxation on the overall net income of
        Bank);
        or

      

      (ii) shall
        impose, modify or hold applicable any reserve, special deposit or similar
        requirement against assets held by, deposits or other liabilities in or for
        the
        account of, advances or loans by, or any other acquisition of funds by Bank
        for
        any Base Interest Rate Loan (except for any reserve, special deposit or other
        requirement included in the determination of the Base Rate); or

      

      (iii) shall
        impose on Bank any other condition directly related to any Base Interest
        Rate
        Loan; and the effect of any of the foregoing is to increase the cost to Bank
        of
        making, renewing or maintaining a Base Interest Rate Loan beyond any adjustment
        made by Bank in determining the applicable interest rate for any such Base
        Interest Rate Loan, or to reduce the amount receivable by Bank
        hereunder;

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

         

      

      then
        Borrower shall from time to time, upon demand by Bank, pay to Bank additional
        amounts sufficient to reimburse Bank for such increased costs or reduced
        amounts. A certificate as to the amount of such increased costs or reduced
        amounts, submitted to the Borrower by Bank, shall, in the absence of manifest
        error, be conclusive and binding on Borrower for all purposes.

      

      (d) Capital
        Adequacy.
        If Bank
        shall determine that:

      

      (i) any
        law,
        rule or regulation, any interpretation or application thereof by any
        governmental authority, central bank, comparable agency or other Person charged
        with the interpretation or administration thereof, any directive, request,
        assessment guideline or other guideline issued by such authority, bank, agency
        or Person (whether or not having the force of law) or any change in any of
        the
        foregoing which is adopted, issued or becomes effective after the date hereof
        affects the amount of capital required or expected to be maintained by Bank
        or
        any Person controlling Bank (a "Capital Adequacy Requirement"); and

      

      (ii) the
        amount of capital maintained by Bank or such Person which is attributable
        to or
        based upon this Note or the amounts outstanding hereunder must be increased
        as a
        result of such Capital Adequacy Requirement (taking into account Bank's or
        such
        Person's policies with respect to capital adequacy), Borrower shall pay to
        Bank
        or such Person, upon demand of Bank, such amounts as Bank or such Person
        shall
        determine are necessary to compensate Bank or such Person for the increased
        costs to Bank or such Person of such increased capital. A certificate of
        Bank,
        setting forth in reasonable detail the computation of any such increased
        costs,
        delivered by Bank to Borrower shall, in the absence of manifest error, be
        conclusive and binding on Borrower for all purposes.

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

         

      

      8. DEFINITIONS.
        As used
        herein, the following terms shall have the meanings respectively set forth
        below: "Amended
        and Restated Credit Agreement"
        means
        that certain Amended and Restated Credit Agreement dated as of February 27,
        2003, by and between Borrower and Bank, as amended and as at any time and
        from
        time to time further amended, supplemented, extended, restated or renewed.
        "Base
        Interest Rate"
        means a
        rate of interest based on the LIBOR Rate. "Base
        Interest Rate Loan"
        means
        amounts outstanding under this Note that bear interest at a Base Interest
        Rate.
"Base
        Rate Maturity Date"
        means
        the last day of the Interest Period with respect to principal outstanding
        under
        a Base Interest Rate Loan. "Business
        Day"
        means a
        day on which Bank is open for business for the funding of corporate loans,
        and,
        with respect to the rate of interest based on the LIBOR Rate, on which dealings
        in U.S. dollar deposits outside of the United States may be carried on by
        Bank.
"Interest
        Period"
        means
        with respect to funds bearing interest at a rate based on the LIBOR Rate,
        any
        calendar period of one (1) month, two (2) months, three (3) months, four
        (4)
        months, five (5) months, six (6) months, nine (9) months or twelve (12) months.
        In determining an Interest Period, a month means a period that starts on
        one
        Business Day in a month and ends on and includes the day preceding the
        numerically corresponding day in the next month. For any month in which there
        is
        no such numerically corresponding day, then as to that month, such day shall
        be
        deemed to be the last calendar day of such month. Any Interest Period which
        would otherwise end on a non-Business Day shall end on the next succeeding
        Business Day unless that is the first day of a month, in which event such
        Interest Period shall end on the next preceding Business Day. "LIBOR
        Rate"
        means a
        per annum rate of interest (rounded upward, if necessary, to the nearest
        1/100
        of 1%) at which dollar deposits, in immediately available funds and in lawful
        money of the United States would be offered to Bank, outside of the United
        States, for a term coinciding with the Interest Period selected by Borrower
        and
        for an amount equal to the amount of principal covered by Borrower's interest
        rate selection, plus Bank’s costs, including the cost, if any, of reserve
        requirements. "Obligor"
        shall
        mean Borrower and any guarantor, co-maker, endorser, or any Person other
        than
        Borrower providing security for this Note under any security agreement, guaranty
        or other agreement between Bank and such guarantor, co-maker, endorser or
        Person, including their successors and assigns. "Origination
        Date"
        means
        the first day of the Interest Period. "Reference
        Rate"
        means
        the rate announced by Bank from time to time at its corporate headquarters
        as
        its Reference Rate. The Reference Rate is an index rate determined by Bank
        from
        time to time as a means of pricing certain extensions of credit and is neither
        directly tied to any external rate of interest or index nor necessarily the
        lowest rate of interest charged by Bank at any given time.

      

      

      DIODES
        INCORPORATED

      

      By:
        /s/
        Carl Wertz

      Carl
        Wertz

      Chief
        Financial Officer

      

      
        
           

        

        
          7

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