Company: LIDRW
Filing Date: 2025-02-25
Form Type: S-1/A
Source: 0000947871-25-000219
Chunk: 19

Company: AEye, Inc.
Filing Date: 2025-02-25
Form: S-1/A
Chunk 19
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ovenants and indemnities customary for similar transactions.
In addition, the Company has also agreed that so long as the Convertible Note is outstanding, the Company shall not enter into any variable
rate transaction other than certain permitted exceptions.

The Convertible Notes contain customary events
of default including but not limited to: (i) failure to file the applicable registration statement with the SEC within five days after
the filing deadline provided in the Registration Rights Agreement (as defined below) or failure to have it declared effective by the
SEC within five days after the effectiveness deadline thereto; (ii) lapse in the effectiveness of the applicable registration statement
or its unavailability for the sale of registrable securities for five consecutive days or more than ten days in any 365-day period, excluding
days during grace periods; (iii) suspension from trading or failure of the Common Stock to be listed on an eligible market for five consecutive
trading days; (iv) failure to deliver the required number of shares of Common Stock within five trading days after the applicable conversion
or exercise date for more than three conversion; (v) default, redemption, or acceleration of at least $1 million of indebtedness, excluding
certain exception; and (vi) bankruptcy, insolvency, reorganization, or liquidation proceedings initiated by or against the Company or
any subsidiary, not dismissed within thirty days.

The Warrant is exercisable for shares of common stock
at a price of $2.22 per share (the “Exercise Price”). The Warrant exercisable after the six month and one day anniversary
of its issuance for a period of four years. The Exercise Price is subject to standard adjustments in the event of certain events, such
as stock splits, combinations, dividends, distributions, reclassifications, mergers or other corporate changes.

In connection with the Convertible Note and Warrant
Transaction, the Company entered into a registration rights agreement, dated January 2, 2025, with such institutional investor (the “Registration
Rights Agreement”). Under the Registration Rights Agreement, we agreed to file a resale registration statement covering the resale
of the Common Stock issuable under the Convertible Note or the Warrant by or before February 3, 2025, and to cause such resale registration
statement to be declared effective by the SEC as promptly as possible after the filing thereof, but, no later than 60 days after the day
of initial filing of the registration statement or 120 days following the filing if the SEC notifies the Company