SEC Contract Filing

Filing Date: 2016-06-30

Document Content:
<DOCUMENT>
<TYPE>EX-10.10
<SEQUENCE>11
<FILENAME>applied_ex1010.htm
<DESCRIPTION>FIRST MODIFICATION TO PROMISSORY NOTE
<TEXT>
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<P STYLE="margin: 0">Exhibit 10.10</P>

<P STYLE="margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>FIRST MODIFICATION TO PROMISSORY NOTE
</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="text-transform: uppercase"><B>This
first modification to</B></FONT><B> PROMISSORY NOTE</B> (this &ldquo;<U>Modification</U>&rdquo;) is entered into as of June 24,
2016 (the &ldquo;<U>Effective Date</U>&rdquo;), by and between APPLIED OPTOELECTRONICS, INC., a Delaware corporation (the &ldquo;<U>Borrower</U>&rdquo;),
and EAST WEST BANK, as Lender (the &ldquo;<U>Lender</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>W I T N E S S E T H</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, the
Borrower is currently indebted to the Lender pursuant to the terms and conditions of that certain Promissory Note in the maximum
principal amount of $5,000,000, executed by the Borrower and payable to the order of the Lender, dated as of July 31, 2014, as
modified from time to time (the &ldquo;<U>Note</U>&rdquo;), which Note is subject to the terms and conditions of the Business Loan
Agreement between the Borrower and the Lender, dated as of July 31, 2014, as amended from time to time (the &ldquo;<U>Business
Loan Agreement</U>&rdquo;);</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree that the Note
shall be modified as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1.&#9;Subsection (i) of the paragraph
entitled &ldquo;The LIBOR Borrowing Rate&rdquo; set forth in the exhibit entitled &ldquo;LIBOR Interest Rate Option&rdquo; attached
to the Note and incorporated by reference therein is hereby deleted in its entirety, and the following is substituted therefor:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&ldquo;The LIBOR Borrowing
Rate is the LIBOR Rate plus 2.0% per annum.&rdquo;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2.&#9;The effective date of the change
set forth herein shall be the Effective Date.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3.&#9;Except as expressly set forth
herein, all terms and conditions of the Note remain in full force and effect, without waiver or modification. All terms defined
in the Note or the Business Loan Agreement shall have the same meaning when used in this Modification. This Modification and the
Note shall be read together, as one document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">4.&#9;The Borrower certifies that as
of the date of this Modification there exists no Event of Default under the Note, nor any condition, act or event which with the
giving of notice or the passage of time or both would constitute any such Event of Default.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">5.&#9;This Modification may be executed
in any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which when
taken together shall constitute one and the same Modification.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">6.&#9;This Modification shall be governed
by and construed in accordance with the laws of the State of California.</P>

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