-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 GVCrJYMWU5O0Qxvvqk74SZzNT4Db8kNBX1dRsnQEnF1qWCQ4CrvW529L919fayyh
 dFYsYKKCOrDiUssr9VDXxA==

<SEC-DOCUMENT>0000912282-08-000498.txt : 20080404
<SEC-HEADER>0000912282-08-000498.hdr.sgml : 20080404
<ACCEPTANCE-DATETIME>20080404162043
ACCESSION NUMBER:		0000912282-08-000498
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080403
ITEM INFORMATION:		Material Modifications to Rights of Security Holders
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080404
DATE AS OF CHANGE:		20080404

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DATA I/O CORP
		CENTRAL INDEX KEY:			0000351998
		STANDARD INDUSTRIAL CLASSIFICATION:	INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825]
		IRS NUMBER:				910864123
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10394
		FILM NUMBER:		08740722

	BUSINESS ADDRESS:	
		STREET 1:		6464 185TH AVE NE, SUITE 101
		CITY:			REDMOND
		STATE:			WA
		ZIP:			98052
		BUSINESS PHONE:		4258676922

	MAIL ADDRESS:	
		STREET 1:		6464 185TH AVE NE, SUITE 101
		CITY:			REDMOND
		STATE:			WA
		ZIP:			98052
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>dataio8k_040308.htm
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-FAMILY: 'Times New Roman'" bgcolor="#ffffff">
        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
        <hr align="center" width="100%" color="black" noshade size="3">
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">UNITED
        STATES</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: center">
        <b><font size="2">Washington, D.C. 20549</font></b></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: center"><b><font size="3">FORM
        8-K</font></b></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">CURRENT REPORT</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: center">
        <b><font size="2">Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
        1934</font></b></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: center"><font size="2">Date of
        Report (Date of earliest event reported):</font> <b><font size="2">April 3,
        2008</font></b></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="4">Data
        I/O Corporation</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: center"><font size="2">(Exact
        name of registrant as specified in its charter)</font></p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="624" align="center" border="0">
                <tr>
                    <td valign="top" width="212">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <b><font size="2">Washington</font></b></p>
                    </td>

                    <td valign="top" width="206">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <b><font size="2">0-10394</font></b></p>
                    </td>

                    <td valign="top" width="206">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <b><font size="2">91-0864123</font></b></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="212">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">(State or other jurisdiction</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">of incorporation)</font></p>
                    </td>

                    <td valign="top" width="206">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">(Commission File Number)</font></p>
                    </td>

                    <td valign="top" width="206">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">(IRS Employer</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">Identification No.)</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">6464
        185th Avenue NE, Suite 101, Redmond, WA 98052</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: center">
        <font size="2">&nbsp;(Address of principal executive offices) (Zip Code)</font></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: center">
        <font size="2">Registrant&rsquo;s telephone number, including area code:</font>
        <b><font size="2">(425) 881-6444</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">Not
        applicable</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(Former
        name or former address, if changed since last report.)</font></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: left"><font size="2">Check the
        appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
        filing obligation of the registrant under any of the following provisions
        (</font><u><font size="2">see</font></u> <font size="2">General Instruction A.2.
        below):</font></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: left">
        <font size="2"><font face="Wingdings">o</font> Written communications pursuant to Rule 425
        under the Securities Act (17 CFR 230.425)</font></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: left">
        <font size="2"><font face="Wingdings">o</font> Soliciting material pursuant to Rule 14a-12
        under the Exchange Act (17 CFR 240.14a-12)</font></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: left">
        <font size="2"><font face="Wingdings">o</font> Pre-commencement communications pursuant to
        Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: left">
        <font size="2"><font face="Wingdings">o</font> Pre-commencement communications pursuant to
        Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 12; page: 12" -->
        <hr color="gray" noshade size="5">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt"><b><font size="2">Item 3.03 Material
        Modification to Rights of Security Holders.</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">Reference is hereby made to both the Registration Statement on Form 8-A
        filed by Data I/O Corporation (the &ldquo;Corporation&rdquo;) with the Securities and
        Exchange Commission (the &ldquo;SEC&rdquo;) on March 13, 1998 (the &ldquo;Registration
        Statement&rdquo;), relating to the Rights Agreement between the Corporation and Mellon
        Investor Services LLC (formerly ChaseMellon Shareholder Services, L.L.C.) (the
        &ldquo;Rights Agent&rdquo;), dated as of April 4, 1998 (the &ldquo;Rights
        Agreement&rdquo;), and the amendment to the Registration Statement on Form 8-A/A filed by
        the Corporation with the SEC on February 12, 1999 (the &ldquo;Amendment to the Registration
        Statement&rdquo;), relating to Amendment No. 1 to the Rights Agreement between the
        Corporation and the Rights Agent dated as of February 10, 1999 (&ldquo;Amendment No.
        1&rdquo;). The Registration Statement on Form 8-A and the Amendment to the Registration
        Statement on Form 8-A/A are incorporated herein by reference.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">The Board of Directors of the Corporation has approved and authorized the
        officers of the Corporation to enter into an amendment extending the &ldquo;Final
        Expiration Date&rdquo; to April 4, 2018 from April 4, 2008 together with such other
        modifications to effect the extension (&ldquo;Amendment No. 2&rdquo;).&nbsp; Amendment No.
        2 was effective April 3, 2008.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">The Rights Agreement, Amendment No. 1 and Amendment No. 2 are filed as
        exhibits and incorporated herein by reference. The foregoing description is qualified in
        its entirety by reference to the Rights Agreement, as amended by Amendment No. 1 and
        Amendment No. 2.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><font size="2">Item
        9.01 Financial Statements and Exhibits.</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="116" border="0">
                <tr>
                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">(d)</font></p>
                    </td>

                    <td valign="top" nowrap width="68">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Exhibits.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="center">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="638" align="left" border="0">
                <tr style="HEIGHT: 0.5in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.5in" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <b><font size="2">Exhibit No.</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.5in" valign="bottom" width="29">
                        <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.5in" valign="bottom" width="525">
                        <p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <b><font size="2">Description</font></b></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 0.1in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="29">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="525">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>

                <tr style="HEIGHT: 0.25in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">4.1</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="29">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="525">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Rights Agreement, dated as of April 4, 1998, between Data
                        I/O Corporation and Mellon Investor Services LLC (formerly ChaseMellon
                        Shareholder Services, L.L.C.), which includes: as Exhibit A thereto, the
                        Form of Right Certificate; and, as Exhibit B thereto, the Summary of Rights
                        to Purchase Series A Junior Participating Preferred Stock (incorporated
                        herein by reference to Exhibit 4.1 of Data I/O Corporation&rsquo;s Form 8-A
                        Registration Statement as filed on March 13, 1998).</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 0.25in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">4.2</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="29">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="525">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Amendment No. 1 to Rights Agreement, dated as of February
                        10, 1999, between Data I/O Corporation and Mellon Investor Services LLC
                        (formerly ChaseMellon Shareholder Services, L.L.C.) (incorporated herein by
                        reference to Exhibit 4.1 of Data I/O Corporation&rsquo;s Form 8-A/A
                        Amendment to the Registration Statement as filed on February 12,
                        1999).</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 0.25in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">4.3</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="29">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="525">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Amendment No. 2 to Rights Agreement, dated as of April 3,
                        2008, between Data I/O Corporation and Mellon Investor Services LLC
                        (formerly ChaseMellon Shareholder Services, L.L.C.).</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p><!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 13; page: 13" --></p>
        <hr color="gray" noshade size="5">
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">SIGNATURES</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the
        registrant has duly caused this report to be signed on its behalf by the undersigned
        hereunto duly authorized.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        &nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="624" border="0">
                <tr style="HEIGHT: 23.85pt">
                    <td style="HEIGHT: 23.85pt" valign="bottom" width="312">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="HEIGHT: 23.85pt" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Data I/O Corporation</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 22.5pt">
                    <td style="HEIGHT: 22.5pt" valign="top" width="312">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Date: April 3, 2008</font></p>
                    </td>

                    <td style="HEIGHT: 22.5pt" width="30">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">By:</font></p>
                    </td>

                    <td style="HEIGHT: 22.5pt" width="282">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><font size="2">/s/ Joel S. Hatlen</font></u></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 20.25pt">
                    <td style="HEIGHT: 20.25pt" width="312">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="HEIGHT: 20.25pt" width="30">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="HEIGHT: 20.25pt" width="282">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Name: Joel S. Hatlen</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 0.25in">
                    <td style="HEIGHT: 0.25in" width="312">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="HEIGHT: 0.25in" width="30">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="HEIGHT: 0.25in" width="282">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Title: Vice President, Chief Financial Officer</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 14; page: 14" -->
        <hr color="gray" noshade size="5">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 10pt; TEXT-ALIGN: center">
        <b><font size="2">EXHIBIT INDEX</font></b></p>

        <div align="center">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="638" align="left" border="0">
                <tr style="HEIGHT: 0.5in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.5in" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <b><font size="2">Exhibit No.</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.5in" valign="bottom" width="29">
                        <p style="MARGIN-TOP: 1pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 1pt solid; HEIGHT: 0.5in" valign="bottom" width="525">
                        <p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 3pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt">
                        <b><font size="2">Description</font></b></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 0.1in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="29">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.1in" valign="top" width="525">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>

                <tr style="HEIGHT: 0.25in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">4.1</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="29">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="525">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Rights Agreement, dated as of April 4, 1998, between Data
                        I/O Corporation and Mellon Investor Services LLC (formerly ChaseMellon
                        Shareholder Services, L.L.C.), which includes: as Exhibit A thereto, the
                        Form of Right Certificate; and, as Exhibit B thereto, the Summary of Rights
                        to Purchase Series A Junior Participating Preferred Stock (incorporated
                        herein by reference to Exhibit 4.1 of Data I/O Corporation&rsquo;s Form 8-A
                        Registration Statement as filed on March 13, 1998).</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 0.25in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">4.2</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="29">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="525">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Amendment No. 1 to Rights Agreement, dated as of February
                        10, 1999, between Data I/O Corporation and Mellon Investor Services LLC
                        (formerly ChaseMellon Shareholder Services, L.L.C.) (incorporated herein by
                        reference to Exhibit 4.1 of Data I/O Corporation&rsquo;s Form 8-A/A
                        Amendment to the Registration Statement as filed on February 12,
                        1999).</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 0.25in; page-break-inside: avoid">
                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">4.3</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="29">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 5.4pt; PADDING-LEFT: 5.4pt; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; HEIGHT: 0.25in" valign="top" width="525">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Amendment No. 2 to Rights Agreement, dated as of April 3,
                        2008, between Data I/O Corporation and Mellon Investor Services LLC
                        (formerly ChaseMellon Shareholder Services, L.L.C.).</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p><!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 15; page: 15" --></p>
        <hr color="gray" noshade size="5">
        <br>
        <br>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: right"><b><font size="2">EXHIBIT
        4.3</font></b></p>

        <p style="MARGIN-TOP: 5pt; MARGIN-BOTTOM: 5pt; TEXT-ALIGN: center">
        <b><font size="2">AMENDMENT NO. 2 TO RIGHTS AGREEMENT</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">THIS AMENDMENT NO. 2 TO RIGHTS AGREEMENT (&ldquo;Amendment No. 2&rdquo;) is
        dated as of the April 3, 2008 between Data I/O Corporation, a Washington corporation (the
        &ldquo;Corporation&rdquo;), and Mellon Investor Services LLC (formerly ChaseMellon
        Shareholder Services, L.L.C.), a New Jersey limited liability company (the &ldquo;Rights
        Agent&rdquo;).</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">WHEREAS, the Corporation and the Rights Agent entered into a Rights
        Agreement dated as of April 4, 1998 (&ldquo;Rights Agreement&rdquo;);</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">WHEREAS, the Corporation and the Rights Agent amended the Rights Agreement
        effective February 10, 1999 (&ldquo;Amendment No. 1&rdquo;);</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">WHEREAS, the Corporation and the Rights Agent desire to further amend the
        Rights Agreement on the terms and conditions set forth below;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">WHEREAS, the Corporation hereby certifies to the Rights Agent that this
        Amendment No. 2 is in compliance with the terms of Section 25.2 of the Rights
        Agreement;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">WHEREAS, the Board of Directors of the Corporation has approved and
        authorized the officers of the Corporation to enter into an amendment extending the Final
        Expiration Date to April 4, 2018 from April 4, 2008 together with such other modifications
        to effect the extension; and</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">WHEREAS, capitalized terms used herein without definition shall have the
        respective meanings ascribed to such terms in the Rights Agreement.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">NOW, THEREFORE, in consideration of the premises and mutual agreements set
        forth in the Rights Agreement, Amendment No. 1 and this Amendment No. 2, the parties hereby
        agree as follows:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">1.&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Amendment to
        Name</font></u><font size="2">. The Rights Agreement is hereby amended by deleting the term
        &ldquo;ChaseMellon Shareholder Services, L.L.C.&rdquo; in each instance and replacing it
        with the term &ldquo;Mellon Investor Services LLC (formerly ChaseMellon Shareholder
        Services, L.L.C.)&rdquo;.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">2.&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Amendment to Section
        1.8</font></u><font size="2">. Section 1.8 of the Rights Agreement is hereby amended by
        adding the terms &ldquo;or in the State of New Jersey&rdquo; immediately following the
        terms &ldquo;in the State of New York&rdquo; and immediately preceding the terms &ldquo;are
        obligated by law&rdquo;.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">3.&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Amendment to Section
        3.1</font></u><font size="2">. Section 3.1 of the Rights Agreement is hereby amended by
        adding the following two sentences to the end of such Section:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.54in; TEXT-ALIGN: left">
        <font size="2">&ldquo;The Corporation shall promptly notify the Rights Agent in writing
        upon the occurrence of the Distribution Date and, if such notification is given orally, the
        Corporation shall confirm the same in writing on or prior to the Business Day next
        following. Until such notice is received</font></p>
        <!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 5; page: 5" -->
        <hr color="gray" noshade size="5">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">by the
        Rights Agent, the Rights Agent may presume conclusively for all purposes that the
        Distribution Date has not occurred.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">4.&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Amendment to Section
        3.3</font></u><font size="2">. Section 3.3 of the Rights Agreement is hereby amended by
        deleting the terms &ldquo;the following legend&rdquo; from the first sentence of such
        Section and replacing it with the terms &ldquo;a legend in substantially the following
        form&rdquo;.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">5.&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Amendment to Section
        5.2</font></u><font size="2">. Section 5.2 of the Rights Agreement is hereby amended by
        adding the terms &ldquo;of notice to that effect&rdquo; immediately following the terms
        &ldquo;and receipt by the Rights Agent&rdquo; and immediately preceding the terms &ldquo;of
        a list of record holders&rdquo; in the first paragraph of such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">6.&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Amendment to Section
        6.1</font></u><font size="2">. Section 6.1 of the Rights Agreement is hereby amended by
        adding the following sentence immediately following the second sentence of such
        Section:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">&ldquo;The
        Right Certificates are transferable only on the registry books of the Rights
        Agent.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">
        <font size="2">Section 6.1 of the Rights Agreement is hereby further amended by adding the
        terms &ldquo;or the Rights Agent&rdquo; immediately following the terms &ldquo;The
        Corporation&rdquo; and immediately preceding the terms &ldquo;may require payment of a sum
        sufficient&rdquo; in the penultimate sentence of such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">
        <font size="2">Section 6.1 of the Rights Agreement is hereby further amended by adding the
        following sentence immediately following the last sentence of such Section:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">
        <font size="2">&ldquo;The Rights Agent shall have no duty or obligation under this Section
        unless and until it is satisfied that any such tax or governmental charge has been
        paid.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">7.&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Amendment to Section
        7.1</font></u><font size="2">. Section 7.1 of the Rights Agreement is hereby amended by
        deleting the term &ldquo;April 4, 2008&rdquo; immediately preceding the defined term (the
        &ldquo;</font><u><font size="2">Final Expiration Date</font></u><font size="2">&rdquo;) in
        such Section, and replacing it with the term &ldquo;April 4, 2018&rdquo;.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">8.&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Amendment to Section
        7.6</font></u><font size="2">. Section 7.6 of the Rights Agreement is hereby amended by
        adding the following sentence immediately following the second sentence of such
        Section:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">&ldquo;The
        Corporation shall give the Rights Agent written notice of the identity of any such
        Acquiring Person, Associate or Affiliate, or the nominee of any of the foregoing, and the
        Rights Agent may rely on such notice in carrying out its duties under this Agreement and
        shall be deemed not to have any knowledge of the identity of any such Acquiring Person,
        Associate or Affiliate, or the nominee of any of the foregoing unless and until it shall
        have received such notice.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">9.&nbsp;&nbsp;&nbsp;</font> <u><font size="2">Amendment to Section
        9.4</font></u><font size="2">. Section 9.4 of the Rights Agreement is hereby amended by
        adding &ldquo;or the Rights Agent&rsquo;s&rdquo; immediately following the terms
        &ldquo;established to the Corporation&rsquo;s&rdquo; and immediately preceding the terms
        &ldquo;reasonable satisfaction&rdquo; in the final sentence of such Section.</font></p>

        <div align="left">
            &nbsp;
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">- 2
        -</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>
        <!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 6; page: 6" -->
        <hr color="gray" noshade size="5">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">10.&nbsp; <u>Amendment to Section 11.8</u>. Section 11.8 of the Rights
        Agreement is hereby amended by adding &ldquo;(with prompt written notice to the Rights
        Agent)&rdquo; immediately following the terms &ldquo;make a public announcement&rdquo; and
        immediately preceding the terms &ldquo;of its election to adjust&rdquo; in the fourth
        sentence of such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">11.&nbsp;</font> <u><font size="2">Amendment to Section
        11.11</font></u><font size="2">. Section 11.11 of the Rights Agreement is hereby amended by
        adding &ldquo;(with prompt written notice to the Rights Agent)&rdquo; immediately following
        the terms &ldquo;Corporation may elect to defer&rdquo; and immediately preceding the terms
        &ldquo;until the occurrence of such event&rdquo; in the first sentence of such
        Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">12.&nbsp;</font> <u><font size="2">Amendment to Section
        12</font></u><font size="2">. Section 12 of the Rights Agreement is hereby amended and
        restated as follows:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">
        <font size="2">&ldquo;Whenever an adjustment is made or any event affecting the Rights or
        their exercisability (including without limitation an event which causes Rights to become
        null and void) as provided in Section&nbsp;11 or Section&nbsp;13 hereof, the Corporation
        shall promptly (a) prepare a certificate setting forth such adjustment or describing such
        event and a brief reasonably, detailed statement of the facts, computations and methodology
        accounting for such adjustment, (b) file with the Rights Agent, and with each transfer
        agent for the Common Stock and the Preferred Stock, a copy of such certificate, and (c)
        mail a brief summary thereof to each holder of a Right Certificate in accordance with
        Section&nbsp;25.1 hereof. The Rights Agent shall be fully protected in relying on any such
        certificate and on any adjustment or statement therein contained and shall have no duty or
        liability with respect to, and shall not be deemed to have knowledge of any adjustment or
        any such event unless and until it shall have received such certificate.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">13.&nbsp;</font> <u><font size="2">Amendment to Section
        14.4</font></u><font size="2">. Section 14.4 of the Rights Agreement is hereby amended by
        deleting the second sentence of Section 14.4 and replacing it with the following
        sentences:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">
        <font size="2">&ldquo;Whenever a payment for fractional Rights or fractional shares is to
        be made by the Rights Agent, the Corporation shall (i) promptly prepare and deliver to the
        Rights Agent a certificate setting forth in reasonable detail the facts related to such
        payments and the prices and/or formulas utilized in calculating such payments, and (ii)
        provide sufficient monies to the Rights Agent in the form of fully collected funds to make
        such payments. The Rights Agent shall be fully protected in relying upon such a certificate
        and shall have no duty with respect to, and shall not be deemed to have knowledge of any
        payment for fractional Rights or fractional shares under any Section of this Agreement
        relating to the payment of fractional Rights or fractional shares unless and until the
        Rights Agent shall have received such a certificate and sufficient
        monies.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">14.&nbsp;</font> <u><font size="2">Amendment to Section
        15.1</font></u><font size="2">. Section 15.1 of the Rights Agreement is hereby amended by
        deleting the terms &ldquo;under Section 18 hereof&rdquo; in the first sentence of such
        Section and replacing it with the term &ldquo;herein&rdquo;. Section 15.1 of the Rights
        Agreement is hereby further amended by inserting the terms &ldquo;by the Corporation&rdquo;
        immediately following the terms &ldquo;for any breach of this Agreement&rdquo; and
        immediately following the terms &ldquo;against actual or threatened violations&rdquo; in
        the penultimate sentence of such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">15.&nbsp;</font> <u><font size="2">Amendment to Section
        18.1</font></u><font size="2">. Section 18.1 of the Rights Agreement is hereby amended and
        restated as follows:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">- 3
        -</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>
        <!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 7; page: 7" -->
        <hr color="gray" noshade size="5">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">&ldquo;The
        Corporation agrees to pay to the Rights Agent reasonable compensation for all services
        rendered by it hereunder and, from time to time, on demand of the Rights Agent, its
        reasonable expenses and counsel fees and disbursements and other disbursements incurred in
        the administration, preparation, delivery, amendment and execution of this Agreement and
        the exercise and performance of its duties hereunder. The Corporation also agrees to
        indemnify the Rights Agent for, and to hold it harmless against, any loss, liability,
        damage, judgment, fine, penalty, claim, demand, settlement, cost or expense (including,
        without limitation, the reasonable fees and expenses of legal counsel) incurred without
        gross negligence, bad faith or willful misconduct on the part of the Rights Agent (which
        gross negligence, bad faith or willful misconduct must be determined by a final order,
        judgment, decree or ruling of a court of competent jurisdiction), for any action taken,
        suffered or omitted by the Rights Agent in connection with the acceptance, administration,
        exercise and performance of its duties under this Agreement. The costs and expenses
        incurred in enforcing this right of indemnification shall be paid by the Corporation. The
        provisions of this Section 18 and Section 20 below shall survive the termination of this
        Agreement, the exercise or expiration of the Rights and the resignation, replacement or
        removal of the Rights Agent.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">16.&nbsp;</font> <u><font size="2">Amendment to Section
        18.2</font></u><font size="2">. Section 18.2 of the Rights Agreement is hereby amended by
        adding &ldquo;and the exercise and performance of its duties hereunder&rdquo; immediately
        following the terms &ldquo;acceptance and administration of this Agreement&rdquo; and
        immediately preceding the terms &ldquo;in reliance upon any Right Certificate&rdquo; in the
        first sentence of such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">17.&nbsp;</font> <u><font size="2">Amendment to Section
        20.2</font></u><font size="2">. Section 20.2 of the Rights Agreement is hereby amended by
        adding &ldquo;or an employee of the Rights Agent&rdquo; immediately following the terms
        &ldquo;legal counsel for the Corporation&rdquo; and immediately preceding the terms
        &ldquo;, and the advice or opinion of such counsel&rdquo;. Section 20.2 of the Rights
        Agreement is hereby further amended by deleting the terms &ldquo;in good faith&rdquo; from
        such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">18.&nbsp;</font> <u><font size="2">Amendment to Section
        20.3</font></u><font size="2">. Section 20.3 of the Rights Agreement is hereby amended by
        adding &ldquo;and complete&rdquo; immediately following the terms &ldquo;shall be
        full&rdquo; and immediately preceding the terms &ldquo;authorization and protection&rdquo;.
        Section 20.3 of the Rights Agreement is hereby further amended by deleting the terms
        &ldquo;in good faith&rdquo; from such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">19.&nbsp;</font> <u><font size="2">Amendment to Section
        20.4</font></u><font size="2">. Section 20.4 of the Rights Agreement is hereby amended and
        restated as follows:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">&ldquo;The
        Rights Agent shall be liable hereunder to the Corporation and any other Person only for its
        own gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or
        willful misconduct must be determined by a final order, judgment, decree or ruling of a
        court of competent jurisdiction). Any liability of the Rights Agent under this Agreement
        will be limited to the amount of annual fees paid by the Corporation to the Rights
        Agent.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">20.&nbsp;</font> <u><font size="2">Amendment to Section
        20.8</font></u><font size="2">. Section 20.8 of the Rights Agreement is hereby amended by
        deleting the terms &ldquo;in good faith&rdquo; from the first sentence of such Section.
        Section 20.8 of the Rights Agreement is hereby further amended by adding the term &ldquo;,
        suffered&rdquo; immediately following the terms &ldquo;any action proposed to be
        taken&rdquo; and immediately preceding the terms &ldquo;or</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">- 4
        -</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>
        <!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 8; page: 8" -->
        <hr color="gray" noshade size="5">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">omitted by
        the Rights Agent&rdquo; in the penultimate sentence of such Section. Section 20.8 of the
        Rights Agreement is hereby further amended by adding the term &ldquo;or&rdquo; immediately
        following the terms &ldquo;action shall be taken or suffered&rdquo; and immediately
        preceding the terms &ldquo;such omission shall be effective&rdquo; in the penultimate
        sentence of such Section. Section 20.8 of the Rights Agreement is hereby further amended by
        adding the terms &ldquo;, suffering or omitting&rdquo; immediately following the terms
        &ldquo;prior to taking&rdquo; and immediately preceding the terms &ldquo;any such
        action&rdquo; in the last sentence of such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">21.&nbsp;</font> <u><font size="2">Amendment to Section
        20.9</font></u><font size="2">. Section 20.9 of the Rights Agreement is hereby amended by
        deleting the term &ldquo;it&rdquo; from the first sentence such Section and replacing such
        term with the term &ldquo;the Rights Agent&rdquo;. Section 20.9 of the Rights Agreement is
        hereby further amended by inserting the terms &ldquo;or any such stockholder, affiliate,
        director, officer or employee&rdquo; immediately following the terms &ldquo;shall preclude
        the Rights Agent&rdquo; and immediately preceding the terms &ldquo;from acting in any other
        capacity&rdquo; in the last sentence of such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">22.&nbsp;</font> <u><font size="2">Amendment to Section
        20.10</font></u><font size="2">. Section 20.10 of the Rights Agreement is hereby amended by
        inserting the terms &ldquo;(through its directors, officers or employees)&rdquo;
        immediately following the terms &ldquo;any duty hereunder either itself&rdquo; and
        immediately preceding the terms &ldquo;or by or through its attorneys or agents&rdquo;.
        Section 20.10 of the Rights Agreement is hereby further amended by inserting the terms
        &ldquo;(which gross negligence, bad faith or willful misconduct must be determined by a
        final order, judgment, decree or ruling of a court of competent jurisdiction)&rdquo;
        immediately preceding the period at the end of such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">23.&nbsp;</font> <u><font size="2">Amendment to Section
        21</font></u><font size="2">. Section 21 of the Rights Agreement is hereby amended by
        inserting the terms &ldquo;known to the Rights Agent&rdquo; immediately following the terms
        &ldquo;the Common Stock or Preferred Stock&rdquo; and immediately preceding the terms
        &ldquo;by registered or certified mail&rdquo; in the first sentence of such
        Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">24.&nbsp;</font> <u><font size="2">Amendment to Section
        23.3</font></u><font size="2">. Section 23.3 of the Rights Agreement is hereby amended by
        inserting the terms &ldquo;(with prompt written notice thereof to the Rights Agent)&rdquo;
        immediately following the terms &ldquo;in accordance with this Agreement&rdquo; and
        immediately preceding the terms &ldquo;and (ii) mailing payment&rdquo;.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">25.&nbsp;</font> <u><font size="2">Amendment to Section
        24.2</font></u><font size="2">. Section 24.2 of the Rights Agreement is hereby amended by
        inserting the terms &ldquo;the Rights Agent and to&rdquo; immediately following the terms
        &ldquo;thereafter give to&rdquo; and immediately preceding the terms &ldquo;each holder of
        a Right Certificate&rdquo;.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">26.&nbsp;</font> <u><font size="2">Amendment to Section
        25.1.1</font></u><font size="2">. Section 25.1.1 of the Rights Agreement is hereby amended
        by deleting the Notices address and replacing it with the following address:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Data I/O
        Corporation</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">6464
        185<sup>th</sup> Ave. NE, Suite 101</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Redmond, WA
        98052</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">27.&nbsp;</font> <u><font size="2">Amendment to Section
        25.1.2</font></u><font size="2">. Section 25.1.2 of the Rights Agreement is hereby amended
        by deleting the Notices address and replacing it with the following address:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">- 5
        -</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>
        <!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 9; page: 9" -->
        <hr color="gray" noshade size="5">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mellon
        Investor Services LLC</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">480
        Washington Blvd</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Jersey
        City, NJ 07310</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Attention:
        Relationship Manager</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">With a copy
        to:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Mellon
        Investor Services LLC</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">480
        Washington Blvd</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Jersey
        City, NJ 07310</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">Attention:
        General Counsel</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">28.&nbsp;</font> <u><font size="2">Amendment to Section
        25.2</font></u><font size="2">. Section 25.2 of the Rights Agreement is hereby amended by
        deleting the last sentence of such Section and replacing it as follows:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">
        <font size="2">&ldquo;This Agreement shall not be amended, without the prior written
        consent of the Rights Agent, in any manner that affects the Rights Agent&rsquo;s own
        rights, duties, obligations or immunities under this Agreement.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">29.&nbsp;</font> <u><font size="2">Amendment to Section
        25.3</font></u><font size="2">. Section 25.3 of the Rights Agreement is hereby amended by
        inserting the terms &ldquo;and calculations&rdquo; immediately following the terms
        &ldquo;make all determinations&rdquo; and immediately preceding the terms &ldquo;deemed
        necessary or advisable&rdquo; in the first sentence of such Section.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">30.&nbsp;</font> <u><font size="2">Amendment to Exhibit
        A</font></u><font size="2">. Exhibit A to the Rights Agreement is hereby amended by
        deleting the term &ldquo;April 4, 2008&rdquo; in each place in which such term appears in
        Exhibit A, and replacing it with the term &ldquo;April 4, 2018&rdquo;. Exhibit A to the
        Rights Agreement is hereby further amended by deleting the Signature Guaranteed in each
        place and replacing it with the following language:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">
        <font size="2">&ldquo;Signatures must be guaranteed by a participant in the Securities
        Transfer Agent Medallion Program, the Stock Exchanges Medallion Program or the New York
        Stock Exchange, Inc. Medallion Signature Program.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">31.&nbsp;</font> <u><font size="2">Amendment to Exhibit
        B</font></u><font size="2">. Exhibit B to the Rights Agreement is hereby amended by
        deleting the term &ldquo;April 4, 2008&rdquo; in each place in which such term appears in
        Exhibit B, and replacing it with the term &ldquo;April 4, 2018&rdquo;.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">32.&nbsp;</font> <u><font size="2">Other Terms
        Unchanged</font></u><font size="2">. This Amendment No. 2 shall be effective as of the date
        hereof and, except as set forth herein, the Rights Agreement shall remain in full force and
        effect and shall be otherwise unaffected hereby.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">33.&nbsp;</font> <u><font size="2">Severability</font></u><font size="2">.
        If any term, provision, covenant or restriction of this Amendment No. 2 is held by a court
        of competent jurisdiction or other authority to be invalid, void or unenforceable, the
        remainder of the terms, provisions, covenants and restrictions of this Amendment No. 2
        shall remain in full force and effect and shall in no way be affected, impaired or
        invalidated.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">34.&nbsp;</font> <u><font size="2">Governing Law</font></u><font size="2">.
        This Amendment No. 2 shall be deemed to be a contract made under the laws of the State of
        Washington and for all purposes shall be governed by and construed in</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">- 6
        -</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>
        <!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 10; page: 10" -->
        <hr color="gray" noshade size="5">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: left"><font size="2">accordance
        with the laws of such State applicable to contracts to be made and performed entirely
        within such State; except that all provisions regarding the rights, duties and obligations
        of the Rights Agent shall be governed and construed in accordance with the laws of the
        State of New York applicable to contracts to be made and performed entirely within such
        State.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-INDENT: 0.25in; TEXT-ALIGN: left">
        <font size="2">35.&nbsp;</font> <u><font size="2">Descriptive
        Headings</font></u><font size="2">. Descriptive headings of the several Sections of this
        Amendment No. 2 are inserted for convenience only and shall not control or affect the
        meaning or construction of any of the provisions hereof.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.21in; TEXT-ALIGN: left">
        <font size="2">IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to
        be duly executed and attested as of the date set forth above. This Amendment No. 2 may be
        executed by facsimile and may be executed in one or more counterparts, each of which shall
        be deemed to be an original for all purposes and all of which together shall constitute one
        and the same instrument.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="center">
            <table style="MARGIN-LEFT: 23.3pt" cellspacing="1" cellpadding="0" width="652" border="0">
                <tr>
                    <td valign="bottom" nowrap width="249">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" nowrap width="395">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 3pt; TEXT-ALIGN: left">
                        <font size="2">DATA I/O CORPORATION</font></p>
                    </td>
                </tr>

                <tr>
                    <td colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" nowrap width="249">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" nowrap width="395">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">By:&nbsp;</font> <u><font size="2">/s/ Joel S.
                        Hatlen</font></u></p>
                    </td>
                </tr>

                <tr>
                    <td width="249">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td width="395">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" nowrap width="249" rowspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="395" rowspan="3">
                        <p dir="ltr" style="MARGIN-RIGHT: 0px">
                        <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:
                        Joel S. Hatlen</font><br>
                        <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title: Vice
                        President, Chief Financial Officer</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" nowrap width="249">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="center">
            <table style="MARGIN-LEFT: 23.3pt" cellspacing="1" cellpadding="0" width="652" border="0">
                <tr>
                    <td valign="bottom" nowrap width="249">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" nowrap width="395">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">MELLON INVESTOR SERVICES LLC, as Rights</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Agent</font></p>
                    </td>
                </tr>

                <tr>
                    <td colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" nowrap width="249">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" nowrap width="395">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">By:</font> <u><font size="2">/s/ Dianna L.
                        Rausch</font></u></p>
                    </td>
                </tr>

                <tr>
                    <td width="249">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td width="395">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" nowrap width="249" rowspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="395" rowspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-ALIGN: left">
                        <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Name: Dianna L.
                        Rausch</font><br>
                        <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title: Vice
                        President, Relationship Manager</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" nowrap width="249">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="bottom" width="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">- 7
        -</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- *************************************************************************** -->
        <!-- MARKER PAGE="sheet: 11; page: 11" -->
        <hr color="gray" noshade size="5">
    </body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
