Kai Hong Joint Venture Agreement Between The Co.

Exhibit 10.17, Kai Hong Joint Venture Agreement, constitutes a fair and accurate English translation of the exhibit.


DIODES INCORPORATED (Registrant)


/s/ JOSEPH LIU March 22, 1996 Vice President, Operations, Secretary, and Chief Financial Officer (Principal Financial and Accounting Officer)


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EXHIBIT 10.17


JOINT VENTURE AGREEMENT


BETWEEN


MRS. J.H. XING


AND


DIODES INCORPORATED


MARCH 18, 1996


* CONFIDENTIAL PORTION OMITTED AND FILED SEPARATELY WITH THE COMMISSION


2 3 TABLE OF CONTENTS


JOINT VENTURE AGREEMENT


ARTICLE I
Summary ........................................................................... Page 1


ARTICLE II
Parties............................................................................ Page 1
1. Formation of Joint Venture................................................. Page 1


ARTICLE III
Purpose and Scope.................................................................. Page 2
2. The Company................................................................ Page 2
3. Scope...................................................................... Page 2
4. Scale...................................................................... Page 2


ARTICLE IV
Total Investment and Investment Ratio.............................................. Page 2
5. Total Investment Amount.................................................... Page 2
6. Registered Capital......................................................... Page 2
7. Percent of Ownership....................................................... Page 2
8. Remitting of Registered Capital............................................ Page 2
9. Transfer of Whole or Partial Investment.................................... Page 3
10. Sell Whole or Partial Ownership............................................ Page 3
11. Involuntary Takeover....................................................... Page 3
11.1 Positive Retained Earnings (f1 ratio)............................. Page 3
11.2 Negative earnings................................................. Page 4
12. Consecutive years losses................................................... Page 4


ARTICLE V
Shanghai Kai Hong Electronic Co., Ltd.
Capital Investment Increase........................................................ Page 4
13. Registered Capital......................................................... Page 4
14. Increased Investment....................................................... Page 5


3 4 ARTICLE VI
15. Responsibility............................................................. Page 5
Party A's Responsibility................................................... Page 5
1. Remit Registered Capital.......................................... Page 6
2. Obtain License.................................................... Page 6
3. Provide utilities................................................. Page 6
4. Foreign Employees Documentation................................... Page 6
5. Miscellaneous..................................................... Page 6


Party B's Responsibility................................................... Page 6
1. Remit Registered Capital.......................................... Page 6
2. Export............................................................ Page 6
3. Technical and Management.......................................... Page 6
4. Miscellaneous..................................................... Page 6
5. Guarantee for Loan................................................ Page 7
1. For Company................................................ Page 7
2. For Party A................................................ Page 7


ARTICLE VII
Sales of Product................................................................... Page 7
16. Export of Product.......................................................... Page 7
17. Sales Price................................................................ Page 7


ARTICLE VIII
Board of Directors................................................................. Page 7
18. Establishment Date......................................................... Page 7
19. Members.................................................................... Page 7
20. Authority.................................................................. Page 8
21. Meetings................................................................... Page 8
22. Decision or Resolution..................................................... Page 8


ARTICLE IX
Management and Operations.......................................................... Page 8
23. General Manager............................................................ Page 8
24. Acting General Manager..................................................... Page 9
25. Dismissal of Key Employee.................................................. Page 9


ARTICLE X
Distribution of Profit and Risk.................................................... Page 9
26. Profit/Loss................................................................ Page 9
27. Distribution of Profit..................................................... Page 9


4 5 ARTICLE XI
Term............................................................................... Page 10
28. Term....................................................................... Page 10
29. Extension of Business Period............................................... Page 10


ARTICLE XII
Liquidation........................................................................ Page 10
30. Liquidate.................................................................. Page 10


ARTICLE XIII
Amendment, Changes or Termination.................................................. Page 11
31. Written Approval........................................................... Page 11
32. Circumstances Beyond Control............................................... Page 11
33. Non-Performance............................................................ Page 11


ARTICLE XIV
Contempt Party's Responsibility.................................................... Page 12
34. Delinquent in Registered Capital........................................... Page 12
35. Failure to Function........................................................ Page 12


ARTICLE XV
Force Majeure...................................................................... Page 12
36. Acts of God, Force Majeure................................................. Page 12


ARTICLE XVI
Governing Law...................................................................... Page 13
37. Obligation................................................................. Page 13


ARTICLE XVII
Arbitration........................................................................ Page 13
38. Place and Applicable Rules................................................. Page 13
39. Entire Agreement........................................................... Page 13


ARTICLE XVIII
40. Original Agreement in Chinese.............................................. Page 13


ARTICLE XIX
Miscellaneous...................................................................... Page 14
41. Original Government Approval Authority..................................... Page 14
42. Equal Power................................................................ Page 14
43. Original Documents......................................................... Page 14
44. Number of Copies........................................................... Page 14
45. Agreement Signed........................................................... Page 14


Dated March 18, 1996


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JOINT VENTURE AGREEMENT


ARTICLE I
SUMMARY


To satisfy market demand for certain electronic components and manufacturing management requirements, Diodes Incorporated and Mrs. J. H. Xing (the original sole investor of Shanghai Kai Hong Electronic Company, Ltd.), based on fair and mutual benefit principle agree to execute this agreement (the "Agreement") and establish a joint venture to capitalize and operate Shanghai Kai Hong Electronics Company, Ltd. (the "Company"). The Company's address shall be: Xinqiao Town, Song Jian County, Shanghai, the People's Republic of China.


ARTICLE II
PARTIES


1. Formation of the Company: The partners of the Joint Venture are:


Party A: Overseas Chinese, Mrs. J. H. Xing (the original sole
investor of
Shanghai Kai Hong Electronic Company, Ltd.)
Address: 97-12 63rd Drive, Apt. 10D
Rego Park, New York 11374 U. S. A.


Party B: Diodes, Incorporated, a U. S. A. Corporation
Address: 3050 Hillcrest, Suite 200
Westlake Village, California 91362-3254 U.S.A.


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ARTICLE III
PURPOSE AND SCOPE


2. The Company, based on the good intention of both parties, will develop
and use advanced manufacturing techniques and modern management
concepts in its business operations to achieve maximum profitability.

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