Form of Notice of Incentive Stock Option Agreement under 2020 Equity and Incentive Compensation Plan

EX-10.28 3 smci-ex1028_2021630x10k.htm EX-10.28 Document


6 May 2020

TWD 1,200 Million 10-Year Term Loan Facility
Summary of Terms & Conditions

According to Super Micro’s needs of debt finance, CTBC Bank CO., LTD. Would like to propose the indicative bank facilities and terms below:
BorrowerSuper Micro Computer, Inc. Taiwan(美超微電腦股份有限公司)
PurposeTo finance the construction cost of Bade Factory phase 1 expansion.
LenderCTBC Bank Co., Ltd. ("CTBC")
CollateralBade Factory, and its buildings after phase 1 expansion completed.
Serial No.: 桃園市八德區大安段 483-1 、484 建號
Land Serial No.: 桃園市八德區大安段 422-1、422-3、422-4、422-6、422-13、422-14、422-15、422-17 、422-18、422-21 、429、429-1、429-2、429-3 、430 、430-1、430-2、431 、431-1 、431-2 、431-4 、434 、434-2 、434-3 、434-4 、434-5 、538 、538-1 、538-3
Facility AmountTWD1,200,000,000only (CTBC facility no.: TW00129786)
Facility TypeProgram loan-long term, non-revolving
Maturity120 months from the Initial Drawdown Date
Interest Rate2-year term floating rate of postal saving interest rate (2YR POSR) + 0.105%
Commission fee subsidy from National Development Fund
Loan Facility operates and governed in accordance with the guidelines of the National Development Fund ("NDF") "Loans for Accelerated Investment by Domestic Corporation" (根留台灣企業加速
投資專案貸款), the interest rate bearing could be deducted directly with such subsidy.
(For example: the approved commission fee rate is 0.50% for the first 5 years, therefore the actual interest rate bearing for the Borrower will be "2YR POSR - 0.395%" for the first 5 years, and "2YR POSR + 0.105%" for the last 5 years)
Utilization  1. Drawdown application against commercial invoices issued within 6 months by the contractor. Each utilization amount is up to 80% of each invoice amount. Invoices payables paid by the Borrower are accepted. The invoice numbers which are financed shall be monitored in avoidance of multiple financing. Facility drawdowns are subject to pay and transfer to the contractor's account, except for those paid payables by the Borrower.
  2. The portion of drawdown amount shall be draw according to the progree of construction. The identification of each progres of construction based on each verifciation letter issued by SGS Taiwan Limited.

itemProgress of ConstructionPortionAccum.PortionAmountAccum.Amount
1H 型銅樁打設完成3.00%3.00%36,000,000 36,000,000 
2第一階支撐架設完成3.00%6.00%36,000,000 72,000,000 
3土方開挖完成3.00%9.00%36,000,000 108,000,000 
4筏碁層結構灌漿完成6.00%15.00%72,000,000 180,000,000 
B2 結構體灌漿完成
6.00%21.00%72,000,000 252,000,000 
B1 結構體灌漿完成
5.00%26.00%60,000,000 312,000,000 
1F 結構體灌漿完成
5.00%31.00%60,000,000 372,000,000 
2F 結構體灌漿完成
5 00%36.00%60,000,000 432,000,000 
3F 結構體灌漿完成
5.00%41.00%60,000,000 492,000,000 
4F 結構體灌漿完成
5.00%46.00%60,000,000 552,000,000 
5F 結構體灌漿完成
5.00%51.00%60,000,000 612,000,000 
6F 結構體灌漿完成
5.00%56 00%60,000,000 672,000,000 
137F 結構體灌漿完成5.00%61.00%60,000,000 732,000,000 
8F 結構體灌漿完成
5.00%66.00%60,000,000 792,000,000 
9F 結構體灌漿完成
3.00%69.00%36,000,000 828,000,000 

2.00%71.00%24,000,000 852,000,000 
17外牆粉刷打底完成4.00%75.00%48,000,000 900,000,000 
3.00%78.00%36,000,000 936,000,000 
19外牆貼磚 完成4.00%82.00%48,000,000 984,000,000 
20外牆拆 架完成3.00%85.00%36,000,000 1,020,000,000 
21消防檢查合格3 00%88.00%36,000,000 1,056,000,000 

2.00%90.00%24,000,000 1,080,000,000 
23送水送電完成3.00%93.00%36,000,000 1,116,000,000 
24機電空調測試完成2.00%95.00%24,000,000 1,140,000,000 
5.00%100.00%60,000,000 1,200,000,000 
For item 17~21, the order of drawdown could vary based on construction situation. Thecumulative drawdown amount shall be constrained up to 71% of the Facility before the structure of the building is constructed.

Availability PeriodAvailable for drawdown by the Borrower within 24 months from the Initial Drawdown Date Any undrawn facility amount shall be cancelled automatically at the end of the relevantAvailability Period.
RepaymentsSubject to a grace period of 36 months after the Initial Drawdown Date, the total principal
outstanding under the Facility shall be amortized monthly from the 37th month.
Scheduled repayment day is set on the 15th day of each month.
Conditions Precedent for Initial Drawdown
Obtain a waiver from the USD250M Syndication arranged by Bank of America for Super Micro Computer, Inc. which is about limitation on debt facilities ceiling of the Borrower.
Delivery of copies of construction license of BaDe Factory phase 1 expansion
Delivery of copies of signed construction contract
Delivery of copies of investment plan for "Action Plan for Accelerated Investment by Domestic Corporations" (根留台灣企業加速投資專案貸款).
Delivery of copies of consent letter of qualification for "Action Plan for Accelerated Investment by Domestic Corporations " (根留台灣企業加速投資專案貸款).
Delivery of written consent form by the contractor who agrees to unconditionally waive any contractor's lien thereto and the rights to request for the lien registration.
Delivery of warranty by the Borrower of mortgage of unregistered buildings.
Delivery of warranty by the Borrower that shall not change the identity of project applicant (起造人).
Collateral shared mortgage with CTBC facility no. TW00026207 (ie: Short-Term revolver TWD 700 million). Total mortgage amount shall be no less than TWD 2,280 million via change of registration rights.
Conditions Subsequent
Immediately mortgage the buildings constructed on the land lots to CTBC at the first priority lien within 1 month after the completion of the construction and registration.
Delivery a collateral appraisal report from certified appraiser in form and substance satisfactory to CTBC within 2 months after the completion of the construction and registration.
In case the Borrower violates guidelines of "Action Plan for Accelerated Investment by Domestic Corporations" (根留台灣企業加速投資專案貸款), or the NDF ceases the commission fee subsidy, the applicable interest rate shall restore to "2YR POSR + 0.105%"
Major Covenants and UndertakingsThe ultimate parent company Super Micro Computer, Inc. shall all times maintain, directly and indirectly, 100% of the Borrower's equity capital.
The Borrower shall keep accurate and complete accounting records and vouchers. In case the Borrower violates guidelines, the Borrower shall return all the commission fees paid by the NDF for the case.
The Borrower warrants that, during the period of construction by the project applicant, it shall not grant junior liens on the collateral to any third party.
The Borrower as the project applicant warrants that it shall not change the identity of the project applicant or any reduction of construction area without obtaining prior written consent from CTBC.

Financial CovenantsThe following financial covenants shall be tested semi-annually based on the Borrower's financial statements:
     (1) Current Ratio (Current Assets / Current Liabilities ) ≥ 100% ;
     (2) Debt Service Coverage Ratio (EBITDA / (Current Portion of Long-Term Debt + Interest Expense ) ) ≥ 130% ;
     (3) Financial Debt Ratio ( Total Financial Debts / Tangible Net Worth ) ≤ 180%

The above financial covenants shall be renegotiated whenever the Borrower engages phase 2 land acquisition plans.

Yours Faithfully,
For and on behalf of