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Item 1.01
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Entry into a Material Definitive Agreement
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On December 2, 2020, Super Micro Computer Inc., Taiwan (the “Subsidiary”), incorporated under the laws of Taiwan and a subsidiary of Super Micro Computer, Inc. (the “Company”), entered into a General Credit Agreement (the “Credit Facility”) with E.SUN Bank (the “Bank”) in Taiwan. Such Credit Facility provides for the issuance of loans, advances, acceptances, bills, bank guarantees, overdrafts, letters of credit, and other types of drawdown instruments up to a credit limit of US$30 million. The term of the Credit Facility is until September 18, 2021.
Generally, interest for base rate loans made under the Credit Facility are based upon an average interbank overnight call loan rate in the finance industry (such as LIBOR or TAIFX) plus a fixed margin, and is subject to occasional adjustment. Interest for adjustable loan rate loans made under the Credit Facility are based upon an average one-year fixed rate time saving deposit rate of a selected reference bank which shall be a well-known domestic bank in Taiwan, and is subject to occasional adjustment. The Credit Facility has customary default provisions permitting the Bank to terminate or reduce the credit limit, shorten the credit period, or deem all liabilities due and payable, including in the event the Subsidiary has an overdue liability at another financial organization.
Terms for specific drawdown instruments issued under the Credit Facility, such as credit amount, term of use, mode of drawdown, specific lending rate, and other relevant terms, are to be set forth in Notifications and Confirmation of Credit Conditions (a “Notification and Confirmation”) negotiated with the Bank. Under a Notification and Confirmation entered into on December 2, 2020, the Subsidiary and the Bank have agreed to a drawdown of US$30 million under the Credit Facility for an import loan with a tenor of 120 days (the “Notification and Confirmation for Import Loan”) with an interest rate based on LIBOR or TAIFX plus a fixed margin.
The foregoing descriptions of the Credit Facility and Notification and Confirmation of Import Loan do not purport to be complete and are qualified in their entirety by reference to the full and complete terms of such documents, copies of which are filed hereby as Exhibit 10.1 and Exhibit 10.2, respectively, and are incorporated herein by reference.
