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## Note 8 – Income Taxes (continued) 

At December 31, 2004, the Company had Federal and state tax credit carryforwards (primarily relating to foreign tax credits, and to a lesser extent to research and development tax credits) of approximately $6.6 million and $0.1 million, respectively, available to offset future regular income and partially offset alternative minimum taxable income. The Federal credit carryforwards will begin to expire in 2009 and the state credit carryforwards will begin to expire in 2020. 

## Note 9 – Employee Benefit Plans 

Employee Savings and Retirement Plans – The Company maintains a 401(k) profit sharing plan (the Plan) for the benefit of qualified employees at its North American locations. Employees who participate may elect to make salary deferral contributions to the Plan up to 100% of the employees’ eligible payroll subject to annual Internal Revenue Code maximum limitations. The Company makes a matching contribution of $1 for every $2 contributed by the participant up to 6% (3% maximum matching) of the participant’s eligible payroll. In addition, the Company may make a discretionary contribution to the entire qualified employee pool, in accordance with the Plan. 

As stipulated by the regulations of the PRC, the Company maintains a retirement plan pursuant to the local Municipal Government for its employees in China. The Company is required to make contributions to the retirement plan at a rate of 22.5% of the employee’s eligible payroll. 

Pursuant to the Taiwan Labor Standard Law and Factory Law, the Company maintains a retirement plan for its employees in Taiwan. The Company makes contributions at a rate of 6% of the employee’s eligible payroll. 

For the years ended December 31, 2002, 2003, and 2004, the Company’s total contributions to all plans were approximately $917,000, $1,241,000, and $1,428,000, respectively. 

## notes to consolidated financial statements Diodes Incorporated and Subsidiaries 

Approximately 440,600 shares were available for future grants under the plans as of December 31, 2004. A sum- mary of stock option transactions for the plans follows: Stock Option Plans – The Company maintains stock option plans for directors, officers, and key employ- ees, which provide for non-qualified and incentive stock options. The Compensation and Stock Option Committee of the Board of Directors determines the option price (not to be less than fair market value of the underlying common stock at the date of grant for incentive stock options) at the date of grant. The options generally expire ten years from the date of grant and are exercisable (vested) over the period stated in each option. 

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As of December 31, 2004, approximately 1,737,200 of the 2,739,200 options outstanding were exercisable. The following summarizes information about stock options outstanding at December 31, 2004: 

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