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. 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. Note 9 – Employee Benefit Plans 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.  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: 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.  Outstanding Options Exercise Price Per Share Weighted  Number  Range  Average Balance, December 31, 2001 3,172,641  $ 0.83-15.94  $ 5.85 Granted 515,550  5.69-6.38  5.72 Exercised  (97,650)  0.83-5.55  3.28 Canceled  (5,400)  5.55-5.69  5.62 Balance, December 31, 2002 3,585,141  0.83-15.94  5.90 Granted 502,950  10.63-13.04  13.03 Exercised  (688,141)  0.83-15.94  2.93 Canceled  (15,325)  5.55-15.94  7.84 Balance, December 31, 2003 3,384,625  2.22-15.94  7.56 Granted 526,900  18.32-21.85  18.35 Exercised  (1,136,725)  2.22-15.94  4.96 Canceled  (35,600)  5.55-18.32  13.64 Balance, December 31, 2004 2,739,200  $ 2.22-21.85  $10.63 Weighted Weighted Range of  average  average  exercise  Number  contractual  exercise  prices  outstanding  life (years)  price ’93 NQO’  $2.67-15.94  631,950  4.6  $ 9.42 ’93 ISO 2.22-15.94  705,400  4.9  7.45 ’01 Plan 4.77-21.85  1,401,850  8.6  12.77 Total $2.22-21.85  2,739,200  6.7  $10.63 42 notes to consolidated financial statements Diodes Incorporated and Subsidiaries