Document:

ex_321809.htm

Exhibit 10.1

 

 

	
			Principal Amount of US$1,000,000.00

				
			Issue Date: December ___, 2021

			
	
			Purchase Price of US$850,000.00

				 
	
			Grey Eagle, Minnesota

				 

 

PROMISSORY NOTE

 

FOR VALUE RECEIVED, the undersigned, MITESCO, INC., a corporation incorporated under the laws of the State of Delaware (the “Borrower”), hereby promises to pay to the order of the MICHAEL C. HOWE LIVING TRUST (the “Lender” and collectively with the Borrower, the “Parties”) on the Termination Date (as defined below), the principal amount One Million and zero/100 United States Dollars (US$1,000,000.00) (the “Principal Amount”) plus an amount equal to ten percent of such Principal Amount. The purchase price for this promissory note (this “Note”) shall be Eight Hundred Fifty Thousand United States Dollars (US$850,000) (the “Purchase Price”) and shall be payable by the Lender to the Borrower on the Issue Date.

 

Section 1    . Certain Terms Defined. The following terms for all purposes of this Promissory Note shall have the respective meanings specified below.

 

“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized by law to close.

 

“Default” means any event which, with the giving of notice, lapse of time, determination of materiality or fulfillment of any other applicable condition (or any combination of the foregoing), would constitute an Event of Default.

 

“Event of Default” has the meaning given to it in Section 11.

 

“GAAP” means generally accepted accounting principles in the United States, in effect from time to time, consistently applied.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, prospects, condition (financial or otherwise) or property of the Borrower, (b) the validity or enforceability of any provision of any Transaction Document, (c) the ability of any party to any Transaction Document to timely perform its obligations thereunder, or (d) the rights and remedies of the Lender under any Transaction Document.

 

“Termination Date” means the maturity date as defined in Section 2.

 

“Transaction Documents” means this Promissory Note and the Warrants

 

“Warrants” shall mean those common stock purchase warrants of the Borrower issuable to the Lender pursuant to Section 5 hereof.

 

 

 

 

Section 2.     Purchase Price.  The Lender shall pay the Purchase Price to the Borrower on the Issue Date.

 

Section 3.    Maturity of this Promissory Note. The Principal Amount shall be due and payable (together with accrued but unpaid interest thereon) plus an amount equal to ten percent (10%) of the Principal Amount, on the earliest of (the “Maturity Date”), (i) the date that is six (6) months following the Issue Date, or (ii) if the Borrower successfully lists it shares of common stock on any of The New York Stock Exchange, the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market, or the Nasdaq Capital Market, the date of such listing.

 

Section 4.    Interest Payments. The unpaid Principal Amount shall bear interest at ten percent (10%) per annum (the “Interest Rate”), which interest shall be payable on a monthly basis.

 

Notwithstanding the foregoing, following an Event of Default, the Principal Amount shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the lesser of (i) the maximum interest rate permitted by applicable law and (ii) eighteen percent (18%) (the “Default Rate”).

 

Interest shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day).

 

Section 5.   Warrants. As further consideration for the Purchase Price payable hereunder, promptly following the Issue Date, the Borrower shall issue to the Lender two common stock purchase warrants, entitling the Lender to purchase (i) 2,100,000 shares of the Borrower’s common stock on substantially the same terms as the Series A warrant issued in connection with the Borrower’s Series D Convertible Preferred Stock, and (ii) 2,100,000 shares of the Borrower’s common stock on substantially the same terms as the Series B warrant issued in connection with the Borrower’s Series D Convertible Preferred Stock.

 

Section 6.    Optional Prepayments. The Borrower may prepay the amounts owing under this Promissory Note in whole or in part at any time prior to the Maturity Date without penalty by paying the Principal Amount and an amount equal to ten percent of the Principal Amount, together with interest accrued thereon and any other amount which may be outstanding to the date of prepayment.

 

Section 7.    General Provisions As To Payments. All payments owing under this Promissory Note by the Borrower hereunder shall be made not later than 12:00 Noon (New York City time) on the date when due by cashier’s check or by wire transfer of immediately available funds to the Lender's account at a bank specified by the Lender in writing to the Borrower without reduction by reason of any set-off or counterclaim. In the event that any required payment date is not a Business Day, then said payment date shall be the next succeeding Business Day.

 

 

 

 

Section 8.     Representations and Warranties of the Borrower. The Borrower represents and warrants to the Lender that:

 

	 	
			a.

				
			it is duly organized, validly existing and in good standing under the laws of the state of its incorporation;

			

 

	 	
			b.

				
			it is duly authorized to do business in all jurisdictions material to the conduct of its business;

			

 

	 	
			c.

				
			it has full power and authority and holds all requisite governmental licenses, permits and other approvals to enter into and perform its obligations under this Promissory Note and to conduct its business substantially as currently conducted by it;

			

 

	 	
			d.

				
			the execution, delivery and performance of this Promissory Note are within the Borrower’s corporate powers and have been duly authorized by all necessary corporate action;

			

 

	 	
			e.

				
			this Promissory Note has been duly executed by an authorized officer of the Borrower and constitutes a legal, valid and binding obligation enforceable against the Borrower;

			

 

	 	
			f.

				
			this Promissory Note does not violate any of the Borrower’s organizational documents, any law, court order or material agreement by which the Borrower is bound; and

			

 

	 	
			g.

				
			the Borrower’s performance under this Promissory Note is not threatened by any pending or threatened litigation.

			

 

Section 9.    Affirmative Covenants. Unless the Lender shall otherwise agree, the Borrower shall:

 

	 	
			a.

				
			(i) maintain its corporate existence and qualify and remain qualified to conduct business as currently conducted; (ii) maintain all approvals necessary for this Promissory Note and the Transaction Documents; and (iii) operate its business with due diligence, efficiency and in conformity with sound business practices;

			

 

	 	
			b.

				
			keep its properties and business insured with financially sound and reputable insurers against loss or damage in such manner and to the same extent as shall be no less than that generally accepted as customary in regard to property and business of like character;

			

 

	 	
			c.

				
			comply in all material respects with all applicable laws, rules, regulations and orders of any government authority;

			

 

 

 

 

	 	
			d.

				
			maintain records, books, management information systems and financial control procedures which together are adequate to: (i) support the accounting practices and tax elections of the Borrower; and (ii) accurately, adequately and fairly reflect the financial condition of the Borrower and the results of its operations in conformity with GAAP;

			

 

	 	
			e.

				
			pay and discharge all taxes, assessments and governmental charges upon it, its income and its properties prior to the date on which penalties are attached thereto, unless and only to the extent that (i) such taxes, assessments and governmental charges shall be contested in good faith and by appropriate proceedings by the Borrower, (ii) reserves which are adequate under GAAP are maintained by the Borrower with respect thereto, and (iii) any failure to pay and discharge such taxes, assessments and governmental charges would not have and could not reasonably be expected to have a Material Adverse Effect;

			

 

	 	
			f.

				
			promptly inform the Lender, in writing, of any proposed material change in the nature or scope of the business or operations of the Borrower, or any event or condition which has or could reasonably be expected to have a Material Adverse Effect;

			

 

	 	
			g.

				
			comply with the requirements of all applicable laws, rules, regulations, and orders of any government authority, a breach of which would or would reasonably be expected to result in a Material Adverse Effect;

			

 

	 	
			h.

				
			obtain, make and keep in full force and effect all licenses, contracts, consents, approvals and authorizations from and registrations with government authorities that may be required to conduct its business, to maintain compliance with all applicable laws and regulations, and remit monies payable pursuant to this Promissory Note;

			

 

	 	
			i.

				
			promptly notify the Lender of the occurrence of (i) any Default or Event of Default; (ii) any event, development or circumstance whereby the Borrower’s financial statements fail in any material respect to present fairly and accurately, in accordance with GAAP, the financial condition and operating results of the Borrower as of the date of such financial statements; (iii) any material litigation or proceedings that are instituted or, to the knowledge of the Borrower, threatened against the Borrower or any of their respective assets; (iv) each and every event which, at the giving of notice, lapse of time, determination of materiality or fulfillment of any other applicable condition (or any combination of the foregoing), would constitute an event of default (however described) under either of the Transaction Documents; and (v) any other development in the business or affairs of the Borrower if the effect thereof might have a Material Adverse Effect;

			

 

	 	
			j.

				
			comply with the Transaction Documents or any other document executed in connection with the transactions contemplated hereby;

			

 

 

 

 

	 	
			k.

				
			inform the Lender, as soon as they are made, of any judicial or non-judicial claims against the Borrower of more than $25,000 or the equivalent thereof in any other currency for each claim; and

			

 

	 	
			l.

				
			execute such other and further documents and instruments as the Lender may reasonably request to implement the provisions of this Promissory Note.

			

 

 

Section 10.    Negative Covenants. Unless the Lender shall otherwise agree, the Borrower shall not:

 

 

	 	
			a.

				
			make any change to the scope or nature of its respective business activities as carried on at the date hereof or undertake any operations not permitted by the Transaction Documents;

			

 

	 	
			b.

				
			(i) violate any laws, ordinances, government rules or regulations to which it is subject or (ii) fail to obtain or maintain any patents, trademarks, service marks, trade names, copyrights, design patents, licenses, permits, franchises or other governmental authorizations necessary to ownership of its property or the conduct of its respective business, in either case where such failure would have or could reasonably be expected to have a Material Adverse Effect; and

			

 

	 	
			c.

				
			assign or otherwise transfer, terminate, waive or amend either of the Transaction Documents without the prior consent of the Lender, except for amendment in the ordinary course of business.

			

 

 

Section 11.    Events Of Default. Each of the following events shall constitute an “Event of Default”:

 

	 	
			a.

				
			the amounts owing under this Promissory Note shall not be paid within five (5) Business Days of the date that such interest was due;

			

 

	 	
			b.

				
			any warranty, representation or statement by the Borrower is or becomes false, misleading or incorrect in a material respect when made or regarded as made by the Borrower under this Promissory Note or the Transaction Documents;

			

 

	 	
			c.

				
			the Borrower fails to perform or observe any material undertaking, obligation or agreement expressed or implied in this Promissory Note or the Transaction Documents and such default is not cured within thirty (30) days, or such longer period as is determined by the Lender, after receipt by the Borrower of a notice from the Lender specifying the failure;

			

 

 

 

 

	 	
			d.

				
			a receiver, receiver and manager, official manager, trustee, administrator or similar official is appointed, or steps are taken for such appointment, over any of the assets or undertaking of the Borrower;

			

 

	 	
			e.

				
			the Borrower is, or becomes, unable to pay its debts when they are due or is, or becomes, unable to pay its debts within the meaning of the US Bankruptcy Code or is presumed to be insolvent under the US Bankruptcy Code;

			

 

	 	
			f.

				
			an application or order is made for the winding up or dissolution of the Borrower, which application or order is not dismissed or withdrawn within twenty on (21) days, or a resolution is passed or any steps are taken to pass a resolution for the winding up or dissolution of the Borrower otherwise than for the purpose of an amalgamation or reconstruction which has the prior written consent of the Lender; or

			

 

	 	
			g.

				
			the Borrower suspends payment of its debts generally.

			

 

If an Event of Default described above shall occur, the amounts owing under this Promissory Note shall become due and payable within thirty (30) days of the Lender’s issuance of a formal demand notice to the Borrower. Immediately upon the occurrence of any Event of Default described above, or upon failure to pay this Promissory Note on the Termination Date, the Lender, without any notice to the Borrower, which notice is expressly waived by the Borrower, may proceed to protect, enforce, exercise and pursue any and all rights and remedies available to the Lender under this Promissory Note and any other agreement or instrument, and any and all rights and remedies available to the Lender at law or in equity.

 

All sums paid or advanced by the Lender in connection with the foregoing and all out-of-pocket costs and reasonable expenses (including, with limitation, reasonable attorneys’ fees and expenses) incurred in connection therewith, together with interest thereon at the Default Rate from the date of payment until repaid in full, shall be paid by the Borrower to the Lender on demand and shall constitute and become a part of the obligations of the Borrower secured hereby.

 

Section 12.    Further Assurances. The Borrower hereby agrees that, from time to time upon the written request of the Lender, the Borrower will execute and deliver such further documents and do such other acts and things as the Lender may reasonably request in order to fully effect the purposes of this Promissory Note and to protect and preserve the priority and validity of the security interests granted hereunder.

 

Section 13.    Powers And Remedies Cumulative; Delay Or Omission Not Waiver Of Event Of Default. No right or remedy herein conferred upon or reserved to the Lender is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

 

 

 

No delay or omission of the Lender to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power or shall be construed to be a waiver of any Event of Default or an acquiescence therein; and every power and remedy given by this Promissory Note or by law may be exercised from time to time, and as often as shall be deemed expedient, by the Lender.

 

Section 14.    Transfers. The Parties may not transfer or assign this Promissory Note nor any right or obligation hereunder to any person or entity without the prior written consent of the other Party.

 

Section 15.    Modification. This Promissory Note may be modified only with the written consent of both the Borrower and the Lender.

 

.         .         Notices. Each notice authorized or required to be given to a party shall be in writing and may be delivered personally or sent by properly addressed prepaid mail in each case addressed to the party at its address set out in below:

 

In the case of the Lender:

 

Michael C. Howe Living Trust

Email:

 

In the case of the Borrower:

 

Mitesco, Inc.

1660 Highway 100 South

Suite 432

St. Louis Park, MN 55416

Attention: Jenny Lindstrom, Chief Legal Officer

 

With a Copy to:

 

Lucosky Brookman LLP

101 Wood Avenue South

Woodbridge, New Jersey 08830

Attention: Seth Brookman

Email: sbrookman@lucbro.com

 

Section 16.    Most Favored Nations. So long as this Promissory Note is outstanding, upon any issuance by the Company or any of its subsidiaries of any new security, with any term that the Lender, reasonably believe is more favorable to the holder of such security or with a term in favor of the holder of such security which Lender reasonably believes was not similarly provided to the Lender in the Warrants, (i) the Company shall notify the Lender of such additional or more favorable term within one (1) business day of the issuance or amendment (as applicable) of the respective security, and (ii) such term, at the option of the Lender, shall become a part of the Transaction Documents (regardless of whether the Company complied with the notification provision of this Section).

 

 

 

 

Section 17.    Miscellaneous. This Promissory Note shall be deemed to be a contract under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said state. The parties hereto hereby waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of or any default under this Promissory Note, except as specifically provided herein, and assent to extensions of the time of payment, or forbearance or other indulgence without notice. The Section headings herein are for convenience only and shall not affect the construction hereof. Any provision of this Promissory Note which is illegal, invalid, prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity, prohibition or unenforceability without invalidating or impairing the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. This Promissory Note shall bind the Borrower and his or her heirs, administrators, executors, personal representatives and permitted assigns. The rights under and benefits of this Promissory Note shall inure to the Lender and its permitted successors and assigns. This Promissory Note may be executed in any number of counterparts, each of which when executed and delivered to the other parties shall constitute an original, but all counterparts together shall constitute one and the same Promissory Note.

 

[Signature Page Follows]

 

 

 

 

 

IN WITNESS WHEREOF, the Borrower has caused this instrument to be duly executed on the date indicated below.

 

Date: December 30, 2021

 

MITESCO, INC.

By: /s/ Lawrence M. Diamond                

Name:  Lawrence M. Diamond

Title: CEOExhibit 10.1

 

SIXTH AMENDMENT TO LOAN AGREEMENT

AND FIFTH AMENDMENT TO SECURITY AGREEMENT

 

THIS SIXTH AMENDMENT TO LOAN
AGREEMENT AND FIFTH AMENDMENT TO SECURITY AGREEMENT (this "Amendment") is made and entered into this 29th day of December,
2021, by and between Applied Optoelectronics, Inc., a Delaware corporation (hereinafter
referred to as "Borrower") with its chief executive office and principal place of business at 13139 Jess Pirtle Blvd.,
Sugar Land, Texas 77478, and TRUIST BANK, a North Carolina banking corporation f/k/a Branch Banking and Trust Company, a North
Carolina banking corporation (including its successors and assigns, hereinafter referred to as "Bank") with an office
at 333 Clay Street, Suite 3800, Houston, Texas 77002.

 

Recitals:

 

Bank and Borrower are parties
to a certain Loan Agreement dated September 28, 2017 (as at any time amended, restated, supplemented or otherwise modified, the "Loan
Agreement"), pursuant to which Bank has made loans and other financial accommodations to Borrower.

 

Bank and Borrower are also
parties to that certain Security Agreement dated September 28, 2017 (as at any time amended, restated, supplemented or otherwise modified,
the "Security Agreement"), pursuant to which Borrower granted a security interest in certain of its personal property
in favor of Bank to secure Borrower’s obligations under the Loan Agreement, the Security Agreement, and the Note (as defined herein).

 

Borrower has requested that
Bank amend the Loan Agreement and the Security Agreement to extend the term of the credit facility thereunder and in certain other respects,
and Bank is willing to do so on the terms and subject to the conditions of this Amendment.

 

NOW, THEREFORE, for TEN DOLLARS
($10.00) in hand paid and other good and valuable consideration, the receipt and sufficiency of which are hereby severally acknowledged,
the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.       Definitions.
Capitalized terms used in this Amendment, unless otherwise defined herein, shall have the respective meanings ascribed to such terms in
the Loan Agreement.

 

2.       Amendments to
Loan Agreement. The Loan Agreement is hereby amended as follows:

 

(a)             
By deleting the first two sentences contained in the paragraph entitled "Line of Credit" on page 1 of the Loan
Agreement, and by substituting in lieu thereof the following:

 

“Line of Credit
("Line of Credit") in the maximum principal amount not to exceed $20,000,000 at any one time outstanding for the purpose of
financing working capital needs and other business purposes which shall be evidenced by the Borrower’s Promissory Note, dated on
or after the date hereof, as amended, restated, supplemented, or otherwise modified from time to time (the “Line Note”), which
shall bear interest at the rate set forth in such note, the terms of which are incorporated herein by reference. The Line of Credit shall
mature on April 15, 2023, when the entire unpaid principal balance then outstanding plus accrued interest thereon shall be paid in full.

 

(b)             
By deleting the first paragraph of the section entitled "Yield Protection" on page 2 of the Loan Agreement, and
by substituting in lieu thereof the following:

 

 

 

    	 	1	 

     

    

 

Yield Protection.
If at any time a change in any law or regulation (including without limitation the Dodd-Frank Wall Street Reform and Consumer Protection
Act and all rules, guidelines, or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision
or other U.S. or foreign regulatory authorities pursuant to Basel III) or in the interpretation thereof by any governmental authority
having the authority to interpret or enforce the same shall make it unlawful for Bank to make or maintain the Loan(s) under the terms
of this Agreement, Bank shall have the right to convert the applicable interest rate on the Loan(s) to (a) if no Event of Default then
exists, a rate based on the Prime Rate Equivalent (as hereinafter defined), to be adjusted as Bank's Prime Rate changes and to be increased
by an interest rate margin determined by Bank, or (b) if an Event of Default exists, the Default Rate. As used herein, as of any
date of determination, "Prime Rate Equivalent" means a per annum interest rate equal to the greater of (a) the Prime Rate as
of such date of determination, minus the amount (if any) by which (i) the Prime Rate as of the conversion described in the preceding
sentence exceeded (ii) the Adjusted Term SOFR Rate (as defined in the Addendum to Promissory Note, dated December 29, 2021, with respect
to the Line Note) as of (or, if not then determinable, as of the most recent determination prior to) the conversion described in the preceding
sentence and (b) 0.75%. As used herein, the term “Sixth Amendment” means the amendment to this Loan Agreement dated December
29, 2021. Similarly, should Bank incur increased costs or a reduction in the amounts received or receivable on the Loan(s) because of
any change in any applicable law, regulation, rule, guideline or order, including without limitation the imposition, modification or applicability
of any reserves, deposits or capital adequacy then Borrower shall pay to Bank within ten (10) business days of demand, which demand shall
contain the basis and calculations supporting such demand, as may be required to compensate Bank for such increased costs or reductions
in amounts to be received hereunder. Each determination and calculation made by Bank shall, absent manifest error, be binding and conclusive
on the parties hereto. All payments made by Borrower hereunder or the other Loan Documents shall be made free and clear and without deduction
of any present or future taxes, levies, imposts, charges or withholdings other than taxes based on net income and franchise taxes imposed
on Bank by the law of the jurisdiction in which the Bank is organized or transacting business.

 

3.       Amendment to
Security Agreement. The Security Agreement is hereby amended by deleting clause (ii) following the phrase "This Security
Agreement is entered into in connection with (check applicable items):" in the introductory section on page 1 of the Security Agreement
in its entirety, and by substituting in lieu thereof the following:

 

	 	 ☒	(ii)	a Promissory Note dated September 28, 2017 (including, without limitation, all addenda, extensions, renewals, modifications and substitutions thereof, the "Note"), made by Debtor (the "Borrower") in favor of Secured Party, as modified on September 30, 2019 to be in the principal amount of $20,000,000, on April 5, 2021 to extend the maturity to October 15, 2021, and on December 29, 2021 to extend maturity to April 15, 2023;

 

4.       Ratification
and Reaffirmation. Borrower hereby ratifies and reaffirms the indebtedness under the Loan Agreement and the other Loan Documents,
each of the Loan Documents, and all of Borrower’s covenants, duties, indebtedness and liabilities under the Loan Documents.

 

5.       Acknowledgments
and Stipulations. Borrower acknowledges and stipulates that each of the Loan Documents executed by Borrower creates legal, valid
and binding obligations of Borrower that are enforceable against Borrower in accordance with the terms thereof; all of the indebtedness
under the Loan Agreement, the Notes and the other Loan Documents is owing and payable without defense, offset or counterclaim (and to
the extent there exists any such defense, offset or counterclaim on the date hereof, the same is hereby knowingly and voluntarily waived
by Borrower); the security interests and liens granted by Borrower in favor of Bank are duly perfected, first priority security interests
and liens; and at the beginning of business on December 27, 2021, the unpaid principal amount of the Line of Credit totaled $4.717.08.

 

6.       Representations
and Warranties. Borrower represents and warrants to Bank, to induce Bank to enter into this Amendment, that no Event of Default
or event which, with the passage of time or giving of notice, would become an Event of Default exists on the date hereof; the execution,
delivery and performance of this Amendment have been duly authorized by all requisite corporate action on the part of Borrower and this
Amendment has been duly executed and delivered by Borrower; and all of the representations and warranties made by Borrower in the Loan
Agreement are true and correct on and as of the date hereof.

 

 

 

    	 	2	 

     

    

 

7.       Reference to
Loan Agreement. Upon the effectiveness of this Amendment, each reference in the Loan Agreement to "this Agreement",
"hereunder", or words of like import shall mean and be a reference to the Loan Agreement, as amended by this Amendment. Upon
the effectiveness of this Amendment, each reference in the Security Agreement to "this Security Agreement", "hereunder",
or words of like import shall mean and be a reference to the Security Agreement, as amended by this Amendment.

 

8.        Breach of Amendment.
This Amendment shall be part of the Loan Agreement and the Security Agreement, and a breach of any representation, warranty or covenant
herein shall constitute an Event of Default.

 

9.       Conditions Precedent.
The amendments contained in Sections 2 and 3 hereof shall be effective as of the date of this Amendment, subject to Bank’s
receipt of each of the following on or before the date of this Amendment, in form and substance satisfactory to Bank, together with all
originals of the same to the extent requested by Bank in its sole discretion:

 

(a)             
a counterpart of this Amendment, duly executed by Borrower;

 

(b)             
a Note Modification Agreement (together with addendum thereto), duly executed by Borrower, in form and substance satisfactory to
Bank;

 

(c)             
resolutions of Borrower authorizing Borrower to enter into this Amendment and the other documents executed in connection herewith,
certified by an authorized officer of Borrower; and

 

(d)             
all other approvals, opinions or documents as Bank may reasonably request.

 

10.       Expenses of Bank.
Borrower agrees to pay, on demand, all costs and expenses incurred by Bank in connection with the preparation, negotiation and
execution of this Amendment and any other Loan Documents executed pursuant hereto and any and all amendments, modifications, and supplements
thereto, including, without limitation, the costs and fees of Bank’s legal counsel and any taxes, filing fees and other expenses
associated with or incurred in connection with the execution, delivery or filing of any instrument or agreement referred to herein or
contemplated hereby.

 

11.       Release of Claims.
To induce Bank to enter into this Amendment, Borrower hereby releases, acquits and forever discharges
Bank, and all officers, directors, agents, employees, successors and assigns of Bank, from any and all liabilities, claims, demands, actions
or causes of action of any kind or nature (if there be any), whether absolute or contingent, disputed or undisputed, at law or in equity,
or known or unknown, that Borrower now has or ever had against Bank arising under or in connection with any of the Loan Documents or otherwise.
Borrower represents and warrants to Bank that Borrower has not transferred or assigned to any Person any claim that Borrower ever had
or claimed to have against Bank.

 

12.       Governing Law.
This Amendment shall be governed by and construed in accordance with the internal laws of the State of Texas.

 

13.       No Novation,
etc. Except as otherwise expressly provided in this Amendment, nothing herein shall be deemed to amend or modify any provision
of the Loan Agreement, the Security Agreement or any of the other Loan Documents, each of which shall remain in full force and effect.
This Amendment is not intended to be, nor shall it be construed to create, a novation or accord and satisfaction, and the Loan Agreement
and the Security Agreement as herein modified shall continue in full force and effect.

 

14.       Successors and
Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns.

 

15.       Further Assurances.
Borrower agrees to take such further actions as Bank shall reasonably request from time to time in connection herewith to evidence or
give effect to the amendments set forth herein or any of the transactions contemplated hereby.

 

 

 

    	 	3	 

     

    

 

16.       Miscellaneous.
This Amendment may be executed in any number of counterparts and by different parties to this Amendment on separate counterparts, each
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. Any manually
executed signature page to this Amendment delivered by a party by facsimile or other electronic transmission shall be deemed to be an
original signature hereto. Section titles and references used in this Amendment shall be without substantive meaning or content of any
kind whatsoever and are not a part of the agreements among the parties hereto. This Amendment expresses the entire understanding of the
parties with respect to the subject matter hereof and may not be amended except in a writing signed by the parties.

 

17.       Waiver of Jury
Trial. To the fullest extent permitted by applicable law, each party hereby waives the right to trial by jury in any action, suit,
counterclaim or proceeding arising out of or related to this Amendment.

 

 

 

 

 

 

 

 

 

 

[Remainder of page intentionally left blank;

signatures appear on following page.]

 

 

 

 

    	 	4	 

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be duly executed and delivered by their respective duly authorized officers on the date first written
above.

 

	WITNESS:	APPLIED OPTOELECTRONICS, INC.
	 	("Borrower")
	 	 
	 	 
	_________________________	By:  /s/ Stefan
    Murry
	 	        Stefan Murry, Chief Financial Officer 
	 	 
	 	 
	 	 
	_________________________	By: /s/ David Kuo
	 	       David Kuo, Vice President, General Counsel and
	 	       Secretary 
	 	 
	 	 
	 	[CORPORATE SEAL]

 

 

 

 

[Signatures continue on following page.]

 

 

Sixth Amendment to Loan Agreement and
Fifth Amendment to Security Agreement (AOI)

 

 

    	 	5	 

     

    

 

 

	 	 
	 	Accepted by Lender: 
	 	 
	 	TRUIST BANK
	 	("Bank")
	 	 
	 	 
	  	By: /s/ Elizabeth
    H. Riley
	 	       Elizabeth H. Riley, Vice President

 

 

 

 

 

 

 

 

 

Sixth Amendment to Loan Agreement and
Fifth Amendment to Security Agreement (AOI)

 

 

    	 	6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}]]