Document:

EX-10.2

Exhibit 10.2

FIRST DEMAND GUARANTY

DATED AS OF MAY 6, 2008

by

FIRST SOLAR, INC.

 

 

GUARANTY

This GUARANTY dated as of May 6, 2008 is made by First Solar, Inc., a Delaware corporation (the
“Guarantor”), in favor of each of the Agents (as defined below) and the Lenders (as defined in the
Facility Agreement dated the date hereof, among First Solar Malaysia
Sdn. Bhd. (Company No. 758827-T) (the “Borrower”),
IKB Deutsche Industriebank Aktiengesellschaft, as Arranger, Natixis Zweigniederlassung Deutschland,
as Facility Agent, Natixis, Labuan Branch, as Security Agent (each of the Arranger, the Facility
Agent and the Security Agent, an “Agent” and, collectively, the “Agents”) and the Original Lenders
listed on Schedule 1 thereto (as amended, modified or supplemented from time to time in accordance
with its terms, the “Credit Agreement”)). Capitalized terms used herein and not otherwise defined
herein shall have the meanings attributed thereto in the Credit Agreement.

The Lenders have agreed to extend Loans to the Borrower pursuant to, and subject to the terms and
conditions of, the Credit Agreement. The obligation of the Lenders to extend such Loans under the
Credit Agreement is conditioned on the execution and delivery by the Guarantor of a first demand
guaranty in the form hereof of the obligations of the Borrower under any of the Finance Documents,
which such obligations are the due and punctual payment and performance of (a) the principal of and
interest on the Loans, when and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise, including interest and fees that accrue after the
commencement of proceedings by or against the Borrower under any bankruptcy, insolvency, or other
debtor relief laws, and (b) all other obligations of the Borrower at any time and from time to time
under the Credit Agreement and the other Finance Documents (the foregoing being collectively
referred to herein as the “Obligations”).

Accordingly, in consideration of the premises and in order to induce the Lenders to make Loans and
extend other financial accommodations under the Credit Agreement, the Guarantor hereby agrees as
follows:

	1.	 	Guaranty
	 
	 	 	The Guarantor hereby irrevocably and unconditionally guarantees the punctual payment when
due, whether at stated maturity, by acceleration or otherwise, and the punctual performance,
of all present and future Obligations of the Borrower under any of the Finance Documents
(the foregoing being referred to herein as the “Guaranteed Obligations”).
	 
	2.	 	Waiver
	 
	 	 	The Guarantor hereby absolutely, unconditionally and irrevocably waives, to the fullest
extent permitted by law, (i) promptness, diligence, notice of acceptance and any other
notice with respect to this Guaranty, (ii) presentment, demand of payment, protest, notice
of dishonor or nonpayment and any other notice with respect to the Guaranteed Obligations,
(iii) any requirement that any Lender or Agent protect, secure, perfect or insure any
security interest or lien or any property subject thereto or exhaust any right or take any
action against the Borrower or any other person or any collateral securing the Guaranteed
Obligations, and (iv) except as may be required in order to trigger a direct obligation of
the Borrower, any other action, event or precondition to the enforcement of this Guaranty or
the performance by the Guarantor of the obligations hereunder.
	 
	3.	 	Guaranty Absolute
	 
	(a)	 	The Guarantor guarantees that, to the fullest extent permitted by law, the
Guaranteed Obligations will be paid or performed strictly in accordance with their
terms, regardless

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		 	of any law, regulation or order now or hereafter in effect in any jurisdiction
affecting any of such terms or the rights of any Agent or Lender with respect
thereto.
	 
	(b)	 	No invalidity, irregularity, voidability, voidness or unenforceability of the
Credit Agreement or any other Finance Document or any other agreement or instrument
relating thereto, or of all or any part of the Guaranteed Obligations or of any security
therefor shall affect, impair or be a defense to this Guaranty.
	 
	(c)	 	This Guaranty is one of payment and performance, not collection, and the
obligations of the Guarantor under this Guaranty are independent of the Guaranteed
Obligations, and a separate action or actions may be brought and prosecuted against the
Guarantor to enforce this Guaranty, irrespective of whether any action is brought
against the Borrower or whether the Borrower is joined in any such action or actions.
	 
	(d)	 	Until the indefeasible payment in full of the Guaranteed Obligations, the
liability of the Guarantor under this Guaranty shall be absolute and unconditional
irrespective of:

	 	(i)	 	any change in the manner, place or terms of payment or performance,
and/or any change or extension of the time of payment or performance of, renewal
or alteration of, any Guaranteed Obligation, any security therefor, or any
liability incurred directly or indirectly in respect thereof, or any other
amendment or waiver of or any consent to departure from the Credit Agreement or
any other Finance Document, including any increase in the Guaranteed Obligations
resulting from the extension of additional credit to the Borrower or any of its
subsidiaries or otherwise;
	 
	 	(ii)	 	any sale, exchange, release, surrender, realization upon any property
by whomsoever at any time pledged or mortgaged to secure, or howsoever securing,
all or any of the Guaranteed Obligations, and/or any offset thereagainst, or
failure to perfect, or continue the perfection of, any lien in any such property,
or delay in the perfection of any such lien, or any amendment or waiver of or
consent to departure from any other guaranty for all or any of the Guaranteed
Obligations;
	 
	 	(iii)	 	any exercise or failure to exercise any rights against the Borrower
or others (including the Guarantor);
	 
	 	(iv)	 	any settlement or compromise (in each case, other than the
indefeasible payment in full of all of the Guaranteed Obligations) of any
Guaranteed Obligation, any security therefor or any liability (including any of
those hereunder) incurred directly or indirectly in respect thereof or hereof, and
any subordination of the payment of all or any part thereof to the payment of any
Guaranteed Obligation (whether due or not) of the Borrower to creditors of the
Borrower other than the Guarantor;
	 
	 	(v)	 	any manner of application of any collateral securing the Guaranteed
Obligations, or proceeds thereof, to all or any of the Guaranteed Obligations, or
any manner of sale or other disposition of any such collateral or any other assets
of the Borrower or any of its subsidiaries;
	 
	 	(vi)	 	any change, restructuring or termination of the existence of the
Borrower or any of its subsidiaries; or
	 
	 	(vii)	 	any other agreements or circumstance of any nature whatsoever which
might otherwise constitute a defense available to, or a discharge of, this
Guaranty and/or

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	 	 	 	obligations of the Guarantor hereunder, or a defense to, or discharge of, the
Borrower or any other person or party relating to this Guaranty or the
obligations of the Guarantor hereunder or otherwise with respect to the Loans
or other financial accommodations to the Borrower.

	 	(e)	 	Any Agent may at any time and from time to time (whether or not after revocation
or termination of this Guaranty) without the consent of, or notice (except as shall be
required by applicable statute and cannot be waived) to, the Guarantor, and without
incurring responsibility to the Guarantor or impairing or releasing the obligations of
the Guarantor hereunder, apply any sums by whomsoever paid or howsoever realized to any
Guaranteed Obligation regardless of what Guaranteed Obligations remain unpaid.
	 
	 	(f)	 	This Guaranty shall continue to be effective or be reinstated, as the case may
be, if at any time payment, or any part thereof, of any Obligation is rescinded or must
otherwise be restored by the Agents or Lenders, upon the bankruptcy or reorganization of
the Borrower.

	4.	 	Continuing Guaranty
	 
	 	 	This Guaranty is a continuing one and shall (i) remain in full force and effect until the
indefeasible payment in full of the Guaranteed Obligations (and, upon such payment, this
Guaranty shall automatically terminate), (ii) be binding upon the Guarantor, its successors
and assigns, and (iii) inure to the benefit of, and be enforceable by, any Lender or Agent,
and their respective permitted successors, permitted transferees and permitted assigns. All
obligations to which this Guaranty applies or may apply under the terms hereof shall be
conclusively presumed to have been created in reliance hereon.
	 
	5.	 	Representations, Warranties and Covenants

	 	(a)	 	The Guarantor hereby represents and warrants, as of the date hereof, to and
with the Lenders and the Facility Agent that:
	 
	 	(i)	 	The Guarantor has the corporate power to execute and deliver this Guaranty and to
incur and perform its obligations hereunder;
	 
	 	(ii)	 	The Guarantor has duly taken all necessary corporate action to authorize the
execution, delivery and performance of this Guaranty and to incur and perform its
obligations hereunder;
	 
	 	(iii)	 	No consent, approval, authorization or other action by, and no notice to or of,
or declaration or filing with, any governmental or other public body, or any other
person, is required for the due authorization, execution, delivery and performance by
the Guarantor of this Guaranty or the consummation of the transactions contemplated
hereby;
	 
	 	(iv)	 	The execution, delivery and performance by the Guarantor of this Guaranty do not
and will not violate or otherwise conflict with any term or provision of any material
agreement, instrument, judgment, decree, order or any statute, rule or governmental
regulation applicable to the Guarantor or result in the creation of any lien upon any of
its properties or assets pursuant thereto, in each case in a manner which could
reasonably be expected to have a material adverse effect on the Guarantor;

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	 	(v)	 	This Guaranty is enforceable against the Guarantor in accordance with its terms,
except as enforcement thereof may be subject to the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar law affecting creditors’ rights
generally, and general principles of equity (regardless of whether such enforcement is
sought in a proceeding in equity or at law);
	 
	 	(vi)	 	No proceeding referred to in Section 21.1(d) of the Credit Agreement is pending
against the Guarantor and no other event referred to in Section 21.1 of the Credit
Agreement has occurred and is continuing; and
	 
	 	(vii)	 	The capital stock of the Borrower directly or indirectly owned by the Guarantor
on the date hereof consists of 330,000,002 shares of common stock, with par value 1 MYR
(Malaysian ringgit) per share, constituting 100% of the authorized, issued and
outstanding capital stock of the Borrower on the date hereof.

     (b) The Guarantor hereby undertakes:

	 	(i)	 	To (x) own of record or beneficially, directly or indirectly, more than 50% of
the issued share capital of the Borrower and (y) maintain direct or indirect control
over the Borrower, including, without limitation, the right to elect a majority of the
members of the board of directors of the Borrower; and
	 
	 	(ii)	 	Not to create or permit to subsist any mortgage, pledge, security interest,
conditional sale or other title retention document, charge, encumbrance, or other lien
(whether such interest is based on common law, statute, other law or contract) upon any
shares in the Borrower.

	6.	 	Expenses
	 
	 	 	The Guarantor will upon demand reimburse any Lender or Agent for any sums, costs, and
expenses which such Lender or Agent may pay or incur pursuant to the provisions of this
Guaranty or in negotiating, executing, perfecting, defending, protecting or enforcing this
Guaranty or in enforcing payment of the Guaranteed Obligations or otherwise in connection
with the provisions hereof (other than any such sums, costs and expenses paid or incurred as
a result of such Lender’s or Agent’s gross negligence or willful misconduct), including
court costs, collection charges, travel expenses, and reasonable attorneys’ fees, together
with interest thereon as specified in Section 12 hereof. Any payment made by the Guarantor
pursuant to this Section 6 shall cause a corresponding reduction in the payment of such
costs under the Credit Agreement.
	 
	7.	 	Terms

	 	(a)	 	All terms defined in the Uniform Commercial Code of the State of New York (the
“UCC”) and used herein shall have the meanings as defined in the UCC, unless the context
otherwise requires.
	 
	 	(b)	 	The words “include,” “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”.
	 
	 	(c)	 	All references herein to sections and subsections shall be deemed to be
references to sections and subsections of this Guaranty unless the context shall
otherwise require.

	8.	 	Amendments and Modification

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	 	 	Neither this Guaranty nor any provision hereof may be amended or modified except pursuant to
an agreement or agreements in writing entered into by the Facility Agent and the Guarantor.
	 
	9.	 	Subrogation Rights

	 	(a)	 	In addition to all such rights of indemnity and subrogation as the Guarantor may
have under applicable law (but subject to Section 9(b)), the Borrower agrees that in the
event a payment shall be made by the Guarantor under this Guaranty, the Borrower shall
indemnify the Guarantor for the full amount of such payment and the Guarantor shall be
subrogated to the rights of the person to whom such payment shall have been made to the
extent of such payment.
	 
	 	(b)	 	The Guarantor hereby agrees that all rights and claims of subrogation,
indemnification, contribution and reimbursement from the Borrower and its property,
regardless of whether such rights arise in connection with this Guaranty, by operation
of law or pursuant to Section 9(a), it may now or hereafter have or acquire against the
Borrower that would constitute it a “creditor” of the Borrower for purposes of the
United States Federal Bankruptcy Code, shall be fully subordinated to the payment in
full of the Guaranteed Obligations.

	10.	 	Remedies Upon Default; Right of Set-Off

	 	(a)	 	In furtherance of the foregoing, upon the occurrence and during the continuance
of any Event of Default, the Facility Agent may, without notice to or demand upon the
Borrower, declare the amount of the unpaid Guaranteed Obligations immediately due and
payable, and shall be entitled to enforce the obligations of the Guarantor hereunder.
	 
	 	(b)	 	Upon such declaration by the Facility Agent, any Agent or Lender are hereby
authorized at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other indebtedness at any time owing by such Agent or
Lender to or for the credit or the account of the Guarantor against any and all of the
obligations of the Guarantor now or hereafter existing under this Guaranty, whether or
not such Agent or Lender shall have made any demand under this Guaranty; provided that
at such time such obligations are due or payable. The Facility Agent agrees promptly to
notify the Guarantor after any such set-off and application, provided that the
failure to give such notice shall not affect the validity of such set-off and
application. The rights of each Agent and Lender under this Section 10 are in addition
to other rights and remedies (including other rights of set-off) which such Agents and
Lenders may have.

     11. Statute of Limitations

     Any acknowledgment or new promise, whether by payment of principal or interest or otherwise
and whether by the Borrower or others (including the Guarantor), with respect to any of the
Guaranteed Obligations shall, if the statute of limitations in favor of the Guarantor
against any Agent or Lender shall have commenced to run, toll the running of such statute of
limitations and, if the period of such statute of limitations shall have expired, prevent
the operation of such statute of limitations.

     12. Rights and Remedies Not Waived

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     No act, omission or delay by any Agent or Lender shall constitute a waiver of its rights and
remedies hereunder or otherwise. No single or partial waiver by any Agent or Lender of any
default hereunder or right or remedy which it may have shall operate as a waiver of any
other default, right or remedy or of the same default, right or remedy on a future occasion.

	13.	 	Admissibility of Guaranty
	 
	 	 	The Guarantor agrees that any copy of this Guaranty signed by the Guarantor and transmitted
by telecopier for delivery to any Agent or Lender, or their respective legal counsel, shall
be admissible in evidence as the original itself in any judicial or administrative
proceeding, whether or not the original is in existence.
	 
	14.	 	Notices
	 
	 	 	All notices, requests and demands to or upon any Agent or Lender under this Agreement shall
be in writing and given as provided in the Credit Agreement. All notices, requests and
demands to or upon the Guarantor shall be in writing and shall be delivered to the following
address:
	 
	 	 	First Solar, Inc.

350 West Washington Street

Suite 600

Tempe, Arizona 85281
	 
	15.	 	Counterparts
	 
	 	 	This Guaranty may be executed in any number of counterparts and by the different parties
hereto on separate counterparts, each of which when so executed and delivered shall be an
original and all of which shall together constitute one and the same agreement.
	 
	16.	 	CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL; ETC.

	 	(a)	 	Each of the parties hereto hereby irrevocably and unconditionally submits, for
itself and its property, to the exclusive jurisdiction of any New York State court or
Federal court of the United States of America, sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or relating
to this Guaranty, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in respect
of any such action or proceeding may be heard and determined in such New York State or,
to the extent permitted by law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law.
	 
	 	(b)	 	Each of the parties hereto hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising out of
or relating to this Guaranty in any court referred to in paragraph (a) of this
Section 16. Each of the parties hereto hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court.
	 
	 	(c)	 	Nothing herein shall affect the right of any party hereto to serve process in any
manner permitted by law.

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	 	(d)	 	EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS GUARANTY. EACH
PARTY HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 16(D).

	17.	 	GOVERNING LAW
	 
	 	 	THIS GUARANTY SHALL BE GOVERNED IN ALL RESPECTS BY THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS EXECUTED AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO
THE CONFLICT OF LAW PRINCIPLES THEREOF.
	 
	18.	 	Captions; Severability

	 	(a)	 	The captions of the sections and subsections of this Guaranty have been inserted
for convenience only and shall not in any way affect the meaning or construction of any
provision of this Guaranty.
	 
	 	(b)	 	If any term of this Guaranty shall be held to be invalid, illegal or
unenforceable, the validity of all other terms hereof shall in no way be affected
thereby.

	19.	 	Acknowledgment of Receipt
	 
	 	 	The Guarantor acknowledges receipt of a copy of this Guaranty and each of the Finance
Documents.

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IN WITNESS WHEREOF, the parties hereto have duly executed this Guaranty as of the date first set
forth above.

	 	 	 	 	 
	 	 	FIRST SOLAR, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Jens Meyerhoff
	 

	 	 	 	 
	 

	 	 	 	Name: Jens Meyerhoff

Title: Chief Financial Officer
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John Gaffney
	 

	 	 	 	 
	 

	 	 	 	Name: John Gaffney
	 

	 	 	 	Title: Executive Vice President and
	 

	 	 	 	General Counsel
	 
	 	 	 	 
	 	 	FIRST SOLAR MALAYSIA SDN. BHD.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Jens Meyerhoff
	 

	 	 	 	 
	 

	 	 	 	Name: Jens Meyerhoff
	 

	 	 	 	Title: Authorized Signatory
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John Gaffney
	 

	 	 	 	 
	 

	 	 	 	Name: John Gaffney
	 

	 	 	 	Title: Authorized Signatory
	 
	 	 	 	 
	 	 	NATIXIS, ZWEIGNIEDERLASSUNG
	 	 	DEUTSCHLAND, as Facility Agent
	 
	 	 	 	 
	 

	 	By:	 	/s/ de Belsunce
	 

	 	 	 	 
	 

	 	 	 	Name: de Belsunce
	

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	/s/ Brüggermann
	 

	 	 	 	 
	 

	 	 	 	Name: Brüggermann
	 

	 	 	 	Title: Director

Signature Page to Sponsor Guarantyexv10w10

Exhibit 10.10

IMPLEMENTATION DEED

DATED        APRIL 2008

DIODES INCORPORATED

and

ZETEX PLC

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page	 
	 
	 	 	 	 	 	 
	1.
	 	Interpretation	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	Press Announcement	 	 	1	 
	 
	 	 	 	 	 	 
	3.
	 	Implementation of the Scheme or offer	 	 	1	 
	 
	 	 	 	 	 	 
	4.
	 	Preparation of Documentation	 	 	3	 
	 
	 	 	 	 	 	 
	5.
	 	Information and access	 	 	4	 
	 
	 	 	 	 	 	 
	6.
	 	Conduct of Business	 	 	4	 
	 
	 	 	 	 	 	 
	7.
	 	Inducement Fee	 	 	5	 
	 
	 	 	 	 	 	 
	8.
	 	Approvals	 	 	5	 
	 
	 	 	 	 	 	 
	9.
	 	Share Schemes	 	 	5	 
	 
	 	 	 	 	 	 
	10.
	 	Competing Proposals	 	 	7	 
	 
	 	 	 	 	 	 
	11.
	 	Termination	 	 	8	 
	 
	 	 	 	 	 	 
	12.
	 	Non-Solicitation of Employees	 	 	8	 
	 
	 	 	 	 	 	 
	13.
	 	Procurement	 	 	9	 
	 
	 	 	 	 	 	 
	14.
	 	Notices	 	 	9	 
	 
	 	 	 	 	 	 
	15.
	 	Announcements	 	 	9	 
	 
	 	 	 	 	 	 
	16.
	 	Remedies and Waivers	 	 	9	 
	 
	 	 	 	 	 	 
	17.
	 	General	 	 	10	 
	 
	 	 	 	 	 	 
	18.
	 	Governing Law and Jurisdiction	 	 	10	 
	 
	 	 	 	 	 	 
	Schedule
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	1.
	 	Indicative Timetable	 	 	11	 
	 
	 	 	 	 	 	 
	2.
	 	Press Announcement	 	 	12	 
	 
	 	 	 	 	 	 
	3.
	 	Interpretation	 	 	13	 

 

 

THIS DEED is made on   April  , 2008

BETWEEN:

	(1)	 	DIODES INCORPORATED a company incorporated under the laws of the State of Delaware with
registered number 683514 and whose registered office is at The Corporation Trust Company,
Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware 19801 United States of
America (Diodes); and
	 
	(2)	 	ZETEX PLC, a company incorporated in England and Wales with registered number 01378777 whose
registered office is at Zetex Technology Park, Chadderton, Oldham, OL9 9LL (Zetex).

WHEREAS:

	(A)	 	Diodes intends to make an offer (through its wholly owned subsidiary, Diodes Holdings UK
Limited, a company incorporated under the laws of England and Wales under registered number
06475363) for the shares of Zetex on the terms and subject to the conditions set out in the
Press Announcement (as defined below).
	 
	(B)	 	The parties have agreed to implement such offer by way of a scheme of arrangement although
Diodes reserves the right, as set out in this deed, to elect to implement such offer by making
a takeover offer for the entire issued and to be issued share capital of Zetex.
	 
	(C)	 	Each party has agreed to take certain steps to effect completion of the transaction and wish
to enter into this deed to record their respective obligations relating to such matters.

THIS DEED WITNESSES as follows:

	1.	 	INTERPRETATION
	 
	1.1	 	In addition to terms defined elsewhere in this deed, the definitions and other provisions in
the schedule headed “Interpretation” apply throughout this deed, unless the contrary intention
appears.
	 
	1.2	 	In this deed, unless the contrary intention appears, a reference to a clause, subclause or
schedule is a reference to a clause, subclause or schedule to this deed. The schedules form
part of this deed.
	 
	1.3	 	The headings in this deed do not affect its interpretation.
	 
	2.	 	PRESS ANNOUNCEMENT
	 
	 	 	The parties shall procure the release of the Press Announcement at or before 8.00am on
4 April 2008 or such other time and date as may be agreed by the parties. Clauses 3
(Implementation of the Scheme), 4 (Preparation of Documentation), 5 (Information and
Access), 6 (Conduct of Business), 7 (Inducement Fee) and 10 (Competing Proposals) of this
deed shall have no effect until and unless release of the Press Announcement occurs in
accordance with this deed.
	 
	3.	 	IMPLEMENTATION OF THE SCHEME OR OFFER
	 
	3.1	 	Subject as provided in this deed, each of Zetex and Diodes, undertakes to each other that it
will co-operate and take or cause to be taken all such steps as are within its power and are
both reasonable and necessary to implement the Scheme as soon as reasonably practicable and in
consultation with each other, including:

	 	(a)	 	Zetex applying to the Court for leave to convene the Court Meeting and filing
such documents as may be necessary in connection with such application;
	 
	 	(b)	 	upon: (i) the Court making the order necessary for the purpose of convening the
Court Meeting; and (ii) any necessary documents being settled with the Court, Zetex
shall as soon as reasonably practicable publish the Scheme Document and, thereafter, in
accordance with any

 

 

	 	 	 	order of the Court, publish such other documents and information as the Court may
approve or require from time to time in connection with the implementation of the
Scheme;
	 
	 	(c)	 	Zetex convening and holding the Zetex General Meeting on the same date and
immediately following the Court Meeting to consider and, if thought fit, approve the
Zetex Resolution. Zetex will use reasonable endeavours to hold the Zetex General
Meeting and the Court Meeting on 12 May 2008 or, if for reasons outside Zetex’s control
it is not possible to hold the Zetex General Meeting and the Court Meeting on that
date, as soon as possible thereafter;
	 
	 	(d)	 	following the Meetings, if the necessary resolutions are passed by the
requisite majorities, Zetex seeking the sanction of the Court to the Scheme, seeking
the confirmation of the Court of the Capital Reduction and taking any other action
reasonably necessary to make the Scheme and the Capital Reduction effective (including,
for the avoidance of doubt, advertising the Capital Reduction in a national newspaper
and reconvening the Court Meeting and any other necessary shareholder meetings if so
required by the Court);
	 
	 	(e)	 	as soon as reasonably practicable following sanction of the Scheme and the
confirmation of the Capital Reduction, in each case by the Court, Zetex causing an
office copy of the Court Orders to be filed with the Registrar and (in the case of the
Court Order confirming the Capital Reduction under section 137 of the Companies Act
1985) requesting that it be registered;
	 
	 	(f)	 	save as permitted by this deed in relation to any contractual obligation of
Zetex arising under any of the Zetex Share Option Schemes, Zetex not allotting or
issuing any Zetex Shares between (1) the voting record time for the Zetex General
Meeting and the Zetex General Meeting and (2) 6.00pm on the Business Day immediately
before the date of the Reduction Court Hearing and the time at which the Scheme becomes
effective;
	 
	 	(g)	 	Zetex requesting the UK Listing Authority and the London Stock Exchange to
cancel the admission to listing and trading of Zetex Shares on and with effect from the
Effective Date;
	 
	 	(h)	 	Zetex using all reasonable endeavours to ensure the time period between the
posting of the Scheme Document and the Effective Date is as short as reasonably
possible;
	 
	 	(i)	 	a representative of Diodes attending the Court Meeting and Final Court Hearing
and undertaking thereat to the Court either in writing or, if so required by the Court,
by Counsel appearing at the hearings to:

	 	(i)	 	procure the delivery to the Zetex Shareholders of the cash
consideration under the Scheme within 14 days of the Effective Date; and
	 
	 	(ii)	 	accept the allotment to it of the new Zetex Shares contemplated
as being created and issued to it under the Scheme;

	 	(j)	 	Diodes making arrangements for Zetex’s registrars (or such other agent as
Diodes in its discretion may appoint) to be placed in funds sufficient to satisfy
Diodes’ obligations under clause (i)(i) above; and
	 
	 	(k)	 	Diodes notifying Zetex in advance of any intention to seek the consent of the
Panel to invoke a condition of the Scheme which will prevent the Scheme from becoming
unconditional and to provide Zetex with reasonable details of the grounds upon which it
intends to seek such consent.
	 
	 	(l)	 	Each party:

	 	(i)	 	using all reasonable endeavours to procure that the Merger
Clearances are obtained as soon as reasonably practicable;
	 
	 	(ii)	 	providing as promptly as reasonably practicable, in
consultation and co-operation with the other party, all such information as may
be reasonably be required for inclusion in any submission to any Relevant
Authority for the purpose of obtaining

 

 

	 	 	 	the Merger Clearances and providing all such other assistance as may
reasonably be required in connection with obtaining the Merger Clearances;
	 
	 	(iii)	 	promptly notifying the other party and providing copies of any
material communications with any Relevant Authority in connection with
obtaining the Merger Clearances, save in respect of any information which is
reasonably considered by that party to be competitively sensitive, which may at
that party’s option be provided to the other party’s legal advisers on an
external counsel basis;
	 
	 	(iv)	 	using all reasonable endeavours to procure that each party and
its advisers are able to attend any meetings or hearings and participate in any
substantive discussions with any Relevant Authority in connection with
obtaining the Merger Clearances; and
	 
	 	(v)	 	keeping the others informed reasonably promptly of developments
which are material or potentially material to the obtaining of the Merger
Clearances by 30 June 2008 or which would otherwise materially affect the
implementation of the Acquisition.

	3.2	 	Zetex agrees that the Scheme Document shall incorporate a recommendation of the Directors to
Zetex Shareholders to vote in favour of the Scheme and the Zetex Resolution in the form set
out in the Press Announcement.
	 
	3.3	 	Zetex confirms to Diodes that the Scheme will contain provisions in accordance with the terms
and conditions set out in the Press Announcement and only as further agreed between Zetex and
Diodes, save as required by applicable law or regulation. Once the Scheme Documentation has
been issued, save as required by law or any court of competent jurisdiction, Zetex will not
amend the Scheme without the prior written consent of Diodes (such consent not to be
unreasonably withheld or delayed).
	 
	3.4	 	The obligations of the parties to implement the Scheme or, if applicable, the Offer are
subject to satisfaction (or, where permissible, waiver by Diodes) of the Conditions. Zetex
undertakes to Diodes that it will procure that the Final Court Hearing is postponed unless, at
6.00 pm on the Business Day preceding the date of the Final Court Hearing appearing on the
Timetable, Diodes has confirmed to Zetex in writing that it has waived or treated as satisfied
each Condition and if such confirmation is not given at that time, Zetex undertakes not to
arrange for the Final Court Hearing to be held on a new date without the prior consent of
Diodes (not to be unreasonably withheld or delayed).
	 
	3.5	 	Diodes may elect to implement the Acquisition by way of an Offer and if it does so, the Offer
will be implemented on the same terms (subject to appropriate amendments, including (without
limitation) an acceptance condition set at 90 per cent. (or such lesser percentage (being more
than 50 per cent.) as Diodes may decide)) set out in the Press Announcement (and at a price no
less than that set out in the Press Announcement), save as required by law or regulation.
	 
	4.	 	PREPARATION OF DOCUMENTATION
	 
	4.1	 	As soon as reasonably practicable following the date hereof, Zetex and Diodes shall use their
respective reasonable endeavours to complete the preparation of the Scheme Document and shall
each work diligently with a view to finalising it no later than 10 April 2008.
	 
	4.2	 	Zetex agrees to consult with Diodes as to the form and content of the Scheme Document, to
seek the approval (not to be unreasonably withheld or delayed) of Diodes of the content of the
Scheme Document before it is posted and endeavour to afford Diodes sufficient time to consider
such document in order to give such approval. Diodes undertakes to provide Zetex promptly
with all such information about itself as may reasonably be required for inclusion in the
Scheme Document and to provide all such other assistance as Zetex may reasonably require in
connection with the preparation of the Scheme Document, including access to, and ensuring the
provision of reasonable assistance by, relevant professional advisers.

 

 

	5.	 	INFORMATION AND ACCESS
	 
	5.1	 	Zetex shall (and shall procure that each other member of the Zetex Group shall) upon the
reasonable request made by or on behalf of Diodes use its reasonable endeavours provide Diodes
with all information, cooperation and assistance that Diodes may require for the purpose of
the Acquisition.
	 
	5.2	 	During the period from the release of the Press Announcement to the Effective Date, Zetex
shall (and shall procure that each member of the Zetex Group shall) upon the reasonable
request made by or on behalf of Diodes, provide all assistance and co-operation to the Clean
Team (as defined in clause 5.4 below) as the Clean Team may reasonably require to enable it to
carry out integration-planning work. Such assistance shall include but shall not be limited to
providing the Clean Team with access to: (i) the management of the Zetex Group; and (ii)
documents, books and records of the Zetex Group.
	 
	5.3	 	Zetex shall only be obliged to comply with its obligations under clause 5.2 if it has
previously received a confidentiality undertaking in the Agreed Form from each relevant
adviser forming part of the Clean Team confirming that any information provided to the Clean
Team in accordance with clause 5.2 or other information relating to the Zetex Group discovered
by the Clean Team in carrying out the integration-planning work referred to in clause 5.2 is
confidential and will not (without the prior written consent of Zetex) be disclosed by the
Clean Team to any member of the Diodes Group.
	 
	5.4	 	For the purposes of this clause 5, the Clean Team shall comprise such professional advisers
nominated by Diodes and agreed to by Zetex (such agreement not to be unreasonably withheld or
delayed).
	 
	6.	 	CONDUCT OF BUSINESS
	 
	6.1	 	Zetex undertakes to Diodes that until the earlier of: (i) the Effective Date; and (ii) the
termination of this deed in accordance with its terms Zetex will not and will procure that no
other member of the Zetex Group will, without the prior consent of Diodes (not to be
unreasonably withheld or delayed):

	 	(a)	 	carry on business other than in the ordinary and usual course;
	 
	 	(b)	 	without prejudice to the generality of the foregoing paragraph (a), engage in
any act or omission which would (i) require shareholder consent pursuant to Rule 21.1
of the Code; (ii) be material for disclosure in the context of the Scheme or the Offer;
(iii) knowingly or wilfully cause any of the Conditions not to be satisfied;
	 
	 	(c)	 	pay any dividend or make any other distribution of profits or capital;
	 
	 	(d)	 	create any indebtedness between members of the Zetex Group which is not
repayable at any time on the demand of the lender or the borrower;
	 
	 	(e)	 	acquire or dispose of any fixed assets with an individual value in excess of
£50,000;
	 
	 	(f)	 	incur any expenditure exceeding £250,000 on capital account;
	 
	 	(g)	 	repay, accelerate or otherwise amend the terms of the current debt facilities
of the Zetex Group;
	 
	 	(h)	 	issue any shares or options over shares (other than the issue by Zetex of
            shares pursuant to the requirements of the Zetex Option Schemes in respect of options
granted prior to the date hereof);
	 
	 	(i)	 	make any capital contribution, gift or subscription for share capital or other
securities in any other company;
	 
	 	(j)	 	dispose of any interest in, or grant any encumbrance over, any real estate
asset;
	 
	 	(k)	 	make any amelioration to the terms of employment of any employee or the terms
of any bonus arrangement;

 

 

	 	(l)	 	settle any litigation for a cost in excess of £50,000; or
	 
	 	(m)	 	make any change to the terms of any of the Zetex Share Option Schemes other
than as envisaged by this deed; or
	 
	 	(n)	 	enter into any agreement or arrangement with the trustees of the Zetex Group
Pension Scheme.

	6.2	 	Zetex may, with the prior written consent of Diodes, implement an employee retention bonus
plan in respect of such Zetex employees and on such terms as both parties may agree in
writing.
	 
	6.3	 	Zetex shall agree to pay the Zetex non-executive directors in respect of fees due in June
2008 in cash.
	 
	7.	 	INDUCEMENT FEE
	 
	7.1	 	Zetex shall pay £891,299 (the Inducement Fee) to Diodes if between the date of the issue of
the Press Announcement and the date upon which the Scheme or Offer lapses or is withdrawn:

	 	(a)	 	a Competing Proposal (or any amendment, variation or revision of such) is
announced and such Competing Proposal subsequently becomes or is declared unconditional
in all respects or is otherwise completed or implemented; or
	 
	 	(b)	 	the Directors (or any committee of the Directors) fail unanimously to recommend
the Acquisition or withdraw or adversely modify or qualify their recommendation of the
Acquisition; or
	 
	 	(c)	 	Zetex enters into an agreement with any third party pursuant to which Zetex
agrees to pay a fee to such third party upon the occurrence of any events similar or
substantially equivalent to any of those detailed in this clause 7.1.

	7.2	 	The Inducement Fee shall become due and payable (without any set-off, deduction or
withholding, save as required by law) seven days after the Scheme or Offer lapses or is
withdrawn.
	 
	7.3	 	Zetex confirms that the Directors believe the arrangements set out in this clause to be in
the best interests of the Zetex Shareholders and that these arrangements have been approved by
the Panel pursuant to Rule 21.2 of the Code.
	 
	7.4	 	Nothing in this deed shall oblige Zetex to pay an amount which the Panel determines would not
be permitted by Rule 21.2 of the Code.
	 
	8.	 	APPROVALS
	 
	 	 	Each of Diodes and Zetex confirm to each other that they have obtained all appropriate
internal authorisations for the purpose of entering into this deed and releasing the Press
Announcement.
	 
	9.	 	SHARE SCHEMES
	 
	9.1	 	Diodes and Zetex agree that:

	 	(a)	 	any option that is already exercisable in accordance with the rules of the
applicable Zetex Share Scheme may, subject to the rules of the applicable Zetex Share
Scheme and any applicable law or regulation, be exercised in sufficient time prior to
the date of the sanctioning of the Scheme so that any Zetex Shares issued in relation
to such exercise shall be subject to the Scheme;
	 
	 	(b)	 	all subsisting options under the 1994 ESOS are already exercisable. A Cashless
Exercise Facility will only be offered to an optionholder under the 1994 ESOS in
respect of options whose exercise price is less than the price offered by Diodes for
each Zetex Share and where the exercise of such options takes effect on the sanctioning
of the Scheme, so that any Zetex

 

 

	 	 	 	Shares issued in relation to such exercise shall be subject to the Scheme. To the
extent not exercised prior to the date of the sanctioning of the Scheme, options
under the 1994 ESOS continue to be subject to the rules of the 1994 ESOS;
	 
	 	(c)	 	all subsisting SAYE options are already exercisable but the exercise price in
respect of each of them is greater than the price offered by Diodes for each Zetex
Share. All subsisting SAYE options will lapse in accordance with the rules of the SAYE
on 30 June 2008;
	 
	 	(d)	 	all subsisting options under the 2003 ESOS are already exercisable, save for an
option over Zetex Shares granted in March 2007 (the March 2007 Option). A Cashless
Exercise Facility will only be offered to an optionholder under the 2003 ESOS (other
than the holder of the March 2007 Option) in respect of options whose exercise price is
less than the price offered by Diodes for each Zetex Share and where the exercise of
such options takes effect on the sanctioning of the Scheme so that any Zetex Shares
issued in relation to such exercise shall be subject to the Scheme;
	 
	 	(e)	 	in respect of the March 2007 Option, Diodes and Zetex agree that they will
co-operate to enable the optionholder of the March 2007 Option (provided that the March
2007 Option still subsists under the 2003 ESOS) either: (i) to exercise it on or soon
after the Effective Date, so that he receives for the Zetex Shares he acquires the same
price offered by Diodes for Zetex Shares; or (ii) to surrender it some time on or after
the sanctioning of the Scheme in exchange for a cash sum payable by Zetex equal to the
difference between the option exercise price of the March 2007 Option and the price
offered by Diodes for Zetex Shares in respect of which the March 2007 Option is being
surrendered. A Cashless Exercise Facility will only be offered to the holder of the
March 2007 Option in respect of that option to the extent that he is permitted to
exercise it on or soon after the Effective Date;
	 
	 	(f)	 	no options under the 2007 ESOS and the PSP are already exercisable, but they
will become exercisable from the Effective Date. A Cashless Exercise Facility will
only be offered to an optionholder under the 2007 ESOS who exercises his option
conditionally on the Effective Date. To the extent not exercised conditionally on the
Effective Date, options under the 2007 ESOS and the PSP will lapse at the end of the
period of three months from the Effective Date, in accordance with the rules of the
2007 ESOS and the PSP;
	 
	 	(g)	 	no options under the BCP are already exercisable but all such options (having
been granted as matching awards under the BCP) will become exercisable upon the
sanctioning of the Scheme in accordance with the rules of the BCP. To the extent not
exercised at the end of the period of six months from the sanctioning of the Scheme,
they will lapse, in accordance with the rules of the BCP; and
	 
	 	(h)	 	the Remuneration Committee has the discretion to grant further options under
and in accordance with the BCP to selected participants, in respect of the financial
year ending 31 December 2007, but if it decides to exercise such discretion, any such
options will be granted by reference to net of tax aggregate bonuses not exceeding
£213,943.44. For the avoidance of doubt, clause 6 does not preclude the exercise of
this discretion by the Remuneration Committee, except that no Zetex Shares allocated
for the purposes of any award under the BCP will be issued and, so far as possible, any
such award will be in respect of Zetex Shares already held in the EBT.

	9.2	 	Diodes and Zetex agree that:

	 	(a)	 	in relation to any outstanding option granted pursuant to a Zetex Share Scheme,
the Remuneration Committee shall be solely responsible for determining if, and the
extent to which, any performance condition attaching to such option has been satisfied
and shall exercise any discretion it has in relation to such outstanding option in
accordance with the rules of the applicable Zetex Share Scheme;
	 
	 	(b)	 	with the effect from the Effective Date, the articles of association of Zetex
will be amended to provide that any Zetex Shares issued and allotted after the
Effective Date will automatically be

 

 

	 	 	 	transferred to or to the order of Diodes for a cash price that is equivalent to the
consideration offered for Zetex Shares acquired under the Scheme;
	 
	 	(c)	 	they will co-operate to ensure that all the Zetex Shares held in the EBT are
used to satisfy all outstanding options granted pursuant to the Zetex Share Schemes
subject, where necessary, to the consent of the trustee of the EBT;
	 
	 	(d)	 	to the extent that the Zetex EBT holds or may hold any Zetex Shares as at
6.00p.m. on the Business Day immediately before the Reduction Court Hearing and such
Zetex Shares remain subject to outstanding options granted pursuant to the Zetex Share
Schemes, or the trustee of the Zetex EBT has agreed to use such Zetex Shares to satisfy
such outstanding options, Diodes and Zetex undertake to cooperate to ensure that a
suitable arrangement is put in place that allows the trustee of the Zetex EBT to
satisfy such outstanding options in Zetex Shares on or after the Effective Date.

	9.3	 	As soon as reasonably practicable after the Scheme Document is posted to the Zetex
Shareholders, Zetex will write to all the holders of outstanding options under the Zetex Share
Schemes and explain the effects of the Scheme on such options provided that:

	 	(a)	 	Zetex and its advisers will consult in a timely manner with Diodes and its
advisers as to the contents of such communications prior to them being sent; and
	 
	 	(b)	 	such communications will be drafted so as to comply with the provisions of Rule
15 of the Code and so as to discharge Diodes’ obligations thereunder.

	9.4	 	For the avoidance of doubt, no Cashless Exercise Facility will be made available except as
specified in clause 9.1.

	9.5	 	In relation to all other issues arising in relation to the Zetex Share Schemes as a result of
or in connection with the Scheme, Zetex and Diodes undertake to cooperate with one another and
to consult in advance on any proposals, or arrangements relevant to the proposals, to be made
to the holders of options under the Zetex Share Schemes.
	 
	10.	 	COMPETING PROPOSALS
	 
	10.1	 	In the event that the Directors are approached by any person who may be interested in making
a Competing Proposal, Zetex shall procure that the Directors shall promptly notify Diodes of
the fact of that approach and shall promptly notify Diodes if such person is given access to
confidential information relating to Zetex.
	 
	10.2	 	If any person makes an Independent Competing Offer Announcement Diodes may amend the terms of
its Offer (the Revised Offer) and for a period of 2 Business Days from the Independent
Competing Offer Announcement, Zetex shall not withdraw the Scheme. In the event that such
Revised Offer:

	(A)	 	is communicated to either the Directors or Zetex’s financial adviser within 2
Business Days of the Independent Competing Offer Announcement; and
	 
	(B)	 	increases the cash price previously offered by Diodes for each Zetex Share so
that such increased cash price is no less than the price offered in the Independent
Competing Offer Announcement the Directors acting reasonably and having sought
independent advice consider that and the terms and circumstances of the Revised Offer
are more favourable taking into account all circumstances including without limitation
any obligation to pay any amount under clause 7 and the relative progress of each
offer,
	 
	 	 	the Directors shall recommend the Revised Offer to the Zetex Shareholders and shall
withdraw any recommendation that they may have made of the Competing Proposal and shall not
recommend the Competing Proposal set out in such Independent Competing Offer Announcement.

 

 

	10.3	 	Zetex undertakes to Diodes that it shall not, and shall procure that the members of the Zetex
Group and its and their respective directors, employees, advisers, agents or other
representatives shall not, directly or indirectly, solicit, encourage to be made or otherwise
seek to procure any Competing Proposal.
	 
	11.	 	TERMINATION
	 
	11.1	 	This deed may be terminated with immediate effect by Diodes or Zetex notifying the other to
that effect and all rights and obligations of Diodes and Zetex hereunder shall, subject to
subclause 11.2 and 11.3, cease forthwith as follows:

	 	(a)	 	if a Competing Proposal (or any amendment, variation or revision of such offer)
becomes or is declared wholly unconditional or is completed; or
	 
	 	(b)	 	if the Scheme is not sanctioned by Zetex Shareholders at the Court Meeting or
the Zetex Resolution is not passed at the Zetex General Meeting, unless Diodes has
previously bindingly elected to implement the Acquisition by way of an Offer (in
accordance with this deed); or
	 
	 	(c)	 	if the Court declines or refuses to sanction the Scheme, unless Diodes has
previously bindingly elected to implement the Acquisition by way of an Offer (in
accordance with this deed); or
	 
	 	(d)	 	if Diodes elects to implement the Acquisition by way of Offer (in accordance
with this deed) and such Offer lapses or is withdrawn; or
	 
	 	(e)	 	if either party is in material breach of this deed, by notice from the party
not in breach; or
	 
	 	(f)	 	if at any time prior to satisfaction of the Conditions, the recommendation by
the Directors of Zetex (or as the case may be the Independent Directors) to vote in
favour of the Scheme or to accept an Offer, is withdrawn, qualified or adversely
amended; or
	 
	 	(g)	 	if any of the Conditions which has not been waived is (or becomes) incapable of
satisfaction or if Diodes notifies Zetex that, notwithstanding the fact that it has the
right to waive such Condition, it will not do so; or
	 
	 	(h)	 	if any Condition which is incapable of waiver becomes incapable of
satisfaction; or
	 
	 	(i)	 	if the Conditions shall not have been all satisfied or waived (as the case may
be) by 31 July 2008.

	11.2	 	If Diodes elects in accordance with this deed to implement the Acquisition by way of an
Offer, then the parties’ obligations under clauses 3 (except clause 3.1(l)), 4, 5, 6, 9 and 10
shall terminate but this shall be without prejudice to the rights of any party that have
arisen prior to that date under those clauses including (without limitation) any claim in
respect of a breach of those clauses.
	 
	11.3	 	Termination of this deed shall be without prejudice to the rights of any party that have
arisen prior to termination, including (without limitation) any claim in respect of a breach
of this deed. Clauses 7 (Inducement Fee), 10 (Competing Proposals), 11 (Termination), 12
(Non-Solicitation of Employees) and 14 (Notices) to 18 (Governing Law and Jurisdiction) shall
survive any such termination.
	 
	12.	 	NON-SOLICITATION OF EMPLOYEES
	 
	12.1	 	Diodes will not (whether alone or in conjunction with, or on behalf of, another person and
whether directly or indirectly) for a period of nine months from the date of this deed,
solicit or entice away, or endeavour to solicit or entice away, from Zetex or any member of
Zetex Group, any person who is both a senior employee employed in a managerial, supervisory,
technical or sales capacity by Zetex or any member of Zetex Group, and (b) a person (i) with
whom Diodes had direct contact during the course of either the negotiations or the due
diligence it conducted in connection with its proposed offer for the share capital of Zetex or
(ii) whose name was specified in the materials included in an online data room relating to the
Acquisition provided by Codex from 25 February 2008 until the date of this deed (each a
Relevant Employee).

 

 

	12.2	 	The employment of any Relevant Employee who (i) responded to an advertisement of a post
available to a member of the public generally; or (ii) was recruited through an employment
agency; or (iii) made an unsolicited approach to Diodes or any member of Diodes Group, shall
not constitute a breach of clause 12.1 provided that in the case of sub clause (ii) of this
clause 12.2 no company in Diodes Group or any of its respective officers and employees had
encouraged or advised such agency to approach such Relevant Employee.
	 
	12.3	 	For the purposes of this clause 12: senior employee shall mean a person whose annual salary
is in an amount in excess of £40,000; and Group shall, in relation to any company, mean its
holding company and each of its subsidiary companies (as such terms are defined in section 736
of the Companies Act 1985).
	 
	13.	 	PROCUREMENT
	 
	 	 	Each party to this deed shall use its reasonable endeavours to procure that its
employees, auditors and advisers shall do all such acts as reasonably necessary to give
effect to the terms of this deed.
	 
	14.	 	NOTICES
	 
	14.1	 	Any notice, approval, consent or other formal communication to be given or made under this
deed must (unless expressly provided otherwise) be in writing and be delivered or sent by fax
to the party to be served at its address or fax number appearing in this deed or at such other
address and/or fax number as it may have notified to the other parties in accordance with this
clause 14.1.
	 
	14.2	 	Any notice, approval, consent or other formal communication shall be deemed to have been
given or made:

	 	(a)	 	if delivered, at the time of delivery; or
	 
	 	(b)	 	if sent by fax, on the date of transmission, if despatched before 3.00 p.m.
(local time at the place of destination) on any Business Day, and in any other case on
the Business Day after the date of despatch.

	14.3	 	In proving service of a notice or document it shall be sufficient to prove that delivery was
made or that the fax message was properly addressed and transmitted, as the case may be.
	 
	15.	 	ANNOUNCEMENTS
	 
	 	 	None of the parties will make any announcement about the implementation of the
Acquisition, the Scheme or the financing of the Acquisition or any matters arising in
relation to or in connection with the Acquisition, the Scheme or the financing of the
Acquisition or about any discussions between the parties concerning any of the foregoing,
without the prior consent of the other parties (such consent in each case not to be
unreasonably withheld or delayed) except to the extent required by law, any court of
competent jurisdiction or any governmental or regulatory body provided that, so far as it is
lawful to do so prior to such disclosure, such party seeks the prior consent of the other
parties to such announcement.
	 
	16.	 	REMEDIES AND WAIVERS
	 
	16.1	 	The rights of each party under this deed may be exercised as often as necessary, are
cumulative and not exclusive of rights and remedies provided by law and may be waived only in
writing and specifically. Delay in exercising or non-exercise of any such right is not a
waiver of that right unless a time limit is set out in this deed or provided by law.
	 
	16.2	 	The rights, powers and remedies provided in this deed are cumulative and not exclusive of any
rights, powers and remedies provided by law.
	 
	16.3	 	Without prejudice to any other rights and remedies which any party may have, each party
acknowledges and agrees that damages may not be an adequate remedy for any breach by any party
of the provisions of this deed and any party may be entitled to seek the remedies of
injunction, specific

 

 

	 	 	performance and other equitable relief (and none of the parties shall contest the
appropriateness or availability thereof), for any threatened or actual breach of any such
provision of this deed by any party and no proof of special damages shall be necessary for
the enforcement by any party of the rights under this deed.
	 
	17.	 	GENERAL
	 
	17.1	 	Each of the provisions of this deed shall be enforceable independently of each of the others
and its validity shall not be affected if any of the others is invalid. If any provision is
void but would be valid if some part of it were deleted, the provision shall apply with such
modification as may be necessary to make it valid.
	 
	17.2	 	Nothing in this deed and no action taken by the parties under this deed shall constitute a
partnership, association, joint venture or other co-operative entity between any of the
parties.
	 
	17.3	 	A person who is not a party to this deed may not enforce any of its terms under the Contracts
(Rights of Third Parties) Act 1999.
	 
	17.4	 	This deed and the documents referred to in it contain the whole agreement between the parties
relating to the transactions contemplated by this deed and supersede all previous agreements
between the parties relating to these transactions save as set out in the confidentiality
agreement between the parties, dated 13 June 2007.
	 
	17.5	 	Each party acknowledges that, in agreeing to enter into this deed, it has not relied on any
representation, warranty, collateral contract or other assurance (except those set out in this
deed) made by or on behalf of any other party at any time before the signature of this deed.
Each of the parties waives all rights and remedies which, but for this clause 17.5, might
otherwise be available to it in respect of any such representation, warranty, collateral
contract or other assurance. Nothing in this clause 17.5 limits or excludes any liability for
fraud.
	 
	17.6	 	This deed may only be varied in writing signed by each of the parties.
	 
	17.7	 	No party shall assign all or any part of the benefit of, or its rights or benefits under,
this deed.
	 
	17.8	 	Save as otherwise expressly provided in this deed, each party shall pay its own costs and
expenses in relation to the negotiation and preparation of this deed and the implementation of
the transactions contemplated hereby.
	 
	17.9	 	This deed may be executed in any number of counterparts, and by the parties on separate
counterparts, but shall not be effective until each party has executed at least one
counterpart.
	 
	17.10	 	Each counterpart shall constitute an original of this deed, but all the counterparts shall
together constitute but one and the same instrument.
	 
	18.	 	GOVERNING LAW AND JURISDICTION
	 
	18.1	 	This deed is governed by English law.
	 
	18.2	 	The English courts have exclusive jurisdiction to settle any dispute, claim or controversy
arising out of or in connection with this deed and the parties submit to the exclusive
jurisdiction of the English courts.
	 
	18.3	 	The parties waive any objections to the English courts on grounds that they are an
inconvenient or inappropriate forum to settle any such dispute.

 

 

SCHEDULE 1

INDICATIVE TIMETABLE

	 	 	 
	Release of Press Announcement
	 	4 April
	 
	 	 
	Filing of the claim form with the Court
	 	10 April
	 
	 	 
	Hearing for leave to convene the Court Meeting
	 	17 April
	 
	 	 
	Posting of the Scheme Document
	 	18 April
	 
	 	 
	Court Meeting and General Meeting
	 	12 May
	 
	 	 
	Hearing for directions in relation to the Capital Reduction
	 	20 May
	 
	 	 
	Advertise court hearing
	 	22 May
	 
	 	 
	Hearing to sanction the Scheme
	 	2 June
	 
	 	 
	Final Court Hearing
	 	4 June
	 
	 	 
	Effective Date
	 	5 June

 

 

SCHEDULE 2

PRESS ANNOUNCEMENT

 

 

SCHEDULE 3

INTERPRETATION

	 	 	 	 	 
	1.

	 	In this deed:	 	 
	 
	 

	 	Acquisition
	 	means the proposed acquisition by Diodes of the entire issued and to
be issued share capital of Zetex as described in the Press
Announcement;
	 
	 	 	 	 
	 

	 	Agreed Form
	 	means, in relation to any document, the form of that document which
has been initialled for the purpose of identification by or on
behalf of each of Diodes and Zetex;
	 
	 	 	 	 
	 

	 	BCP
	 	means the Zetex plc 2007 Bonus Co-Investment Plan;
	 
	 	 	 	 
	 

	 	Business Day
	 	means a day (other than a Saturday or Sunday) on which banks are
generally open in London for normal business;
	 
	 	 	 	 
	 

	 	Capital Reduction
	 	means the proposed reduction of share capital of Zetex pursuant to the Scheme;
	 
	 	 	 	 
	 

	 	Cashless Exercise Facility
	 	on the exercise of any option granted pursuant to a Zetex Share
Scheme, a facility under which Diodes:
	 
	 	 	 	 
	 

	 	 	 	(a)   withholds from the consideration due on the acquisition of the
Zetex Shares received on the exercise of such option an amount equal
to any exercise price payable, and any taxation arising, as a result
of the exercise; and

	 

	 	 	 	(b)   pays such withheld sums to Zetex, which will ensure that the
correct sums are paid to the relevant taxation authority in respect
of the exercise of such option;

	 
	 	 	 	 
	 

	 	Code
	 	means the City Code on Takeovers and Mergers;
	 
	 	 	 	 
	 

	 	Competing Proposal
	 	means a proposed offer, tender offer, merger, acquisition, scheme of
arrangement, recapitalisation or other business combination
(including a transaction involving a dual listed company structure)
(for the avoidance of doubt, whether or not subject to the
satisfaction of any pre-condition) relating to any direct or
indirect acquisition or purchase of 51 per cent. or more of the
Zetex Shares or of the business or assets of Zetex and its
subsidiaries (taken as a whole) proposed by any third party which is
not an associate (as defined in the Code) of Diodes;
	 
	 	 	 	 
	 

	 	Conditions
	 	means the conditions to implementation of the Scheme and the
Acquisition or, if applicable, the Offer, set out in the Press
Announcement;
	 
	 	 	 	 
	 

	 	Court
	 	means the High Court of Justice in England and Wales or the Court of
Appeal of England and Wales, as the case may be;
	 
	 	 	 	 
	 

	 	Court Meeting
	 	means any meeting or meetings of the Zetex Shareholders as may be
convened pursuant to an order of the Court pursuant to section 896
of the Companies Act 2006 for the purposes of considering and, if
thought fit, approving the Scheme (with or without amendment),
including any adjournment or postponement of any such meeting;

 

 

	 	 	 	 	 
	 

	 	Directors
	 	means the board of directors of Zetex;
	 
	 	 	 	 
	 

	 	Effective Date
	 	means the date upon which (i) the Scheme becomes effective in
accordance with its terms, or (ii) if Diodes elects to implement the
Acquisition by way of Offer, the Offer becomes or is declared
unconditional in all respects;
	 
	 	 	 	 
	 

	 	1994 ESOS
	 	means the Zetex plc 1994 Executive Share Option Scheme;
	 
	 	 	 	 
	 

	 	2003 ESOS
	 	means the Zetex plc 2003 Executive Share Option Scheme;
	 
	 	 	 	 
	 

	 	2007 ESOS
	 	means the Zetex plc 2007 Executive Share Option Scheme;
	 
	 	 	 	 
	 

	 	Final Court Hearing
	 	means the final hearing of the Petition by the Court;
	 
	 

	 	Final Court Order
	 	means the order of the Court confirming the reduction of capital
provided for by the Scheme under section 137 of the Companies Act
1985;
	 
	 	 	 	 
	 

	 	Independent Competing

Offer Announcement
	 	means an announcement of a firm intention to make an offer
comprising a Competing Proposal whether or not made pursuant to Rule
2.5 of the Code;
	 
	 	 	 	 
	 

	 	Meetings
	 	means the Zetex General Meeting and the Court Meeting;
	 
	 	 	 	 
	 

	 	Merger Clearances
	 	means all relevant merger control
clearances to allow the implementation of the Acquisition having been obtained pursuant to
Conditions 4a and 4b as set out in Appendix 1 to the Press
Announcement;
	 
	 	 	 	 
	 

	 	Offer
	 	means a recommended offer made on behalf of Diodes to acquire all of
the Zetex Shares, on the terms and subject to the conditions set out
in the Press Announcement (subject to appropriate amendments,
including (without limitation) the inclusion of an acceptance
condition set at ninety per cent. (or such lesser percentage (being
more than 50 per cent.) as Diodes may decide), of the shares to
which such offer relates) and, where the context admits, any
subsequent revision, variation, extension or renewal of such offer;
	 
	 	 	 	 
	 

	 	Panel
	 	means the Panel on Takeovers and Mergers;
	 
	 	 	 	 
	 

	 	Petition
	 	means the petition applying to the Court for the Final Court Order;
	 
	 	 	 	 
	 

	 	Press Announcement
	 	means the press announcement to be issued in accordance with Rule
2.5 of the Code announcing the terms of the Scheme, a final draft of
which is set out in the scheduled headed “Press Announcement”;
	 
	 	 	 	 
	 

	 	PSP
	 	means the Zetex plc 2007 Performance Share Plan;
	 
	 	 	 	 
	 

	 	Reduction Court Hearing
	 	means the hearing by the Court of the application to confirm the
Capital Reduction;
	 
	 	 	 	 
	 

	 	Registrar
	 	means the Registrar of Companies for England and Wales;
	 
	 	 	 	 
	 

	 	Relevant Authority
	 	means any central bank, ministry, government, government department,
governmental, quasi-governmental, (including the European Union),
supranational, statutory, regulatory or investigative body or
authority (including any national or supranational anti-trust or
merger control authority), national, state, municipal or local

 

 

	 	 	 	 	 
	 

	 	 	 	government (including any subdivision, court, administrative agency
or commission or other authority thereof), private body or other
authority, trade agency, association, institution or professional or
environmental body in any relevant jurisdiction;
	 
	 	 	 	 
	 

	 	Remuneration Committee
	 	means the remuneration committee from time to time until the
Effective Date of the board of directors of Zetex;
	 
	 	 	 	 
	 

	 	SAYE Scheme
	 	means the Zetex plc SAYE scheme;
	 
	 	 	 	 
	 

	 	Scheme
	 	means the proposed acquisition of the Zetex Shares by Diodes by way
of a scheme of arrangement under section 895 of the Companies Act
2006, on the terms and subject to the Conditions set out in the
Press Announcement and to be set out in the Scheme Document with or
subject to any modification, addition or condition approved or
imposed by the Court and agreed by Zetex and Diodes;
	 
	 	 	 	 
	 

	 	Scheme Document
	 	means the document to be sent to Zetex Shareholders which will
contain, among other things, the terms and conditions of the Scheme
and which will include the notices convening the Court Meeting and
the Zetex General Meeting, a draft of which is in the Agreed Form;
	 
	 	 	 	 
	 

	 	Timetable
	 	means the timetable for the implementation of the Scheme, the
current form of which is set out in the schedule headed “Indicative
Timetable”;
	 
	 	 	 	 
	 

	 	Zetex EBT
	 	means the Zetex Employee Share Ownership Plan Trust created by a
trust deed dated 8 March 1999;
	 
	 	 	 	 
	 

	 	Zetex General Meeting
	 	means the general meeting of Zetex Shareholders to be convened for
the purposes of considering and, if thought fit, approving the Zetex
Resolution, including any adjournment or postponement of that
meeting;
	 
	 	 	 	 
	 

	 	Zetex Group
	 	means Zetex and its subsidiary undertakings, and references to a
“member” or “members” of the Zetex Group shall be construed
accordingly;
	 
	 	 	 	 
	 

	 	Zetex Resolution
	 	means the special resolution to approve, amongst other things, the
cancellation of the entire issued share capital of Zetex and such
other matters as may be necessary or desirable to implement the
Scheme and any Offer;
	 
	 	 	 	 
	 

	 	Zetex Shareholders
	 	means the holders of Zetex Shares;
	 
	 	 	 	 
	 

	 	Zetex Share Schemes
	 	means the 1994 ESOS, the 2003 ESOS, the 2007 ESOS, the BCP, the PSP
and the SAYE Scheme; and
	 
	 	 	 	 
	 

	 	Zetex Shares
	 	means ordinary shares of 5p each in the capital of Zetex.

	2.	 	In this deed:

	 	(a)	 	references to a person include a body corporate and an unincorporated
association of persons;
	 
	 	(b)	 	references to an individual include his estate and personal representatives;
	 
	 	(c)	 	references to a party to this deed include references to the successors and
assigns (immediate or otherwise) of that party;

 

 

	 	(d)	 	a person shall be deemed to be connected with another if that person is
connected with that other within the meaning of section 839 of the Income and
Corporation Taxes Act 1988 (as in force at the date of this deed);
	 
	 	(e)	 	the expressions acting in concert, control and offer shall have the meaning
given in the Code;
	 
	 	(f)	 	references to a transfer of a share include the disposal of any interest in
that share (including the creation of any security interest or other third party right
over any interest in that share and any renouncement in favour of another person of any
right to the allotment or transfer of that share);
	 
	 	(g)	 	the words including and include shall mean including without limitation and
include without limitation, respectively;
	 
	 	(h)	 	any reference importing a gender includes the other gender;
	 
	 	(i)	 	any reference to a time of day is to London time;
	 
	 	(j)	 	any reference to £ is to Pound Sterling, any
reference to ñ is to Euro and any
reference to $ is to United States Dollars; and
	 
	 	(k)	 	any reference to a document is to that document as amended, varied or novated
from time to time otherwise than in breach of this deed or that document.

	3.	 	In this deed, any reference, express or implied, to an enactment includes:

	 	(a)	 	that enactment as re-enacted, amended, extended or applied by or under any
other enactment (before, on or after the signature of this deed);
	 
	 	(b)	 	any enactment which that enactment re-enacts (with or without modification);
and
	 
	 	(c)	 	any subordinate legislation made (before, on or after the signature of this
deed) under any enactment, as re-enacted, amended, extended or applied as described in
paragraph (a) above, or under any enactment referred to in paragraph (b) above ,

	 	 	provided that no such enactment or subordinate legislation made after the date of this
deed shall increase the liability of any party under this deed, and enactment includes any
legislation in any jurisdiction.
	 
	4.	 	The eiusdem generis rule does not apply to this deed. Accordingly, specific words indicating
a type, class or category of thing do not restrict the meaning of general words following such
specific words, such as general words introduced by the word other or a similar expression.
Similarly, general words followed by specific words shall not be restricted in meaning to the
type, class or category of thing indicated by such specific words.
	 
	5.	 	A reference in this deed to any English legal term for any action, remedy, method or form of
judicial proceeding, legal document, court or any other legal concept or matter will be deemed
to include a reference to the corresponding or most similar legal term in any jurisdiction
other than England, to the extent that such jurisdiction is relevant to the transactions
contemplated by this deed or the terms of this deed.
	 
	6.	 	Paragraphs 1 to 5 above apply unless the contrary intention appears.

 

 

IN WITNESS of which this document has been executed and delivered as a deed on the date which first
appears on page 1 above.

	 	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)     	 	 	 
	 
	 	 	 	 	 	 
	DIODES INCORPORATED

	 	 	)     	 	 	 
	 
	 	 	 	 	 	 
	acting
by Keh-Shew Lu

	 	 	)     	/s/ Keh-Shew Lu	 	 
	 
	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)     	 	 	 
	 
	 	 	 	 	 	 
	ZETEX PLC

	 	 	)     	 	 	 
	 
	acting
by Hans Rohrer

	 	 	)     	/s/ Hans Rohrer	 	 
	 
	 	 	 	 	 	 
	and

	 	 	)

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