SEC Contract Filing

Filing Date: 2021-04-09

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>appliedopto_ex1001.htm
<DESCRIPTION>FIFTH AMENDMENT TO LOAN AGREEMENT AND FOURTH AMENDMENT TO SECURITY AGREEMENT
<TEXT>
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<P STYLE="margin: 0">Exhibit 10.1</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>FIFTH AMENDMENT TO LOAN AGREEMENT AND</U></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>FOURTH AMENDMENT TO SECURITY AGREEMENT</U></B></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: justify; text-indent: 0.5in">THIS FIFTH AMENDMENT TO LOAN
AGREEMENT AND FOURTH AMENDMENT TO SECURITY AGREEMENT (this &quot;<U>Amendment</U>&quot;) is made and entered into this 5th day of April,
2021, by and between <FONT STYLE="text-transform: uppercase"><B>Applied Optoelectronics, Inc</B></FONT>., a Delaware corporation (hereinafter
referred to as &quot;<U>Borrower</U>&quot;) with its chief executive office and principal place of business at 13139 Jess Pirtle Blvd.,
Sugar Land, Texas 77478, and <B>TRUIST BANK</B>, 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 &quot;<U>Bank</U>&quot;) with an office
at 333 Clay Street, Suite 3800, Houston, Texas 77002.</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: center"><B><U>Recitals</U>:</B></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: justify; text-indent: 0.5in">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 &quot;<U>Loan
Agreement</U>&quot;), pursuant to which Bank has made loans and other financial accommodations to Borrower.</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">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 &quot;<U>Security Agreement</U>&quot;), pursuant to which Borrower granted a security interest in certain of its personal property
in favor of Bank to secure Borrower&rsquo;s obligations under the Loan Agreement, the Security Agreement, and the Note (as defined in
the Security Agreement).</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">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.</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">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:</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"><B>1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.</B>
Capitalized terms used in this Amendment, unless otherwise defined herein, shall have the respective meanings ascribed to such terms in
the Loan Agreement.</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">2<B>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendments
to Loan Agreement</U>.</B> The Loan Agreement is hereby amended as follows:</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">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Effective as of April 2, 2021, by deleting the reference to &quot;April 2, 2021&quot; contained in the paragraph entitled &quot;<B>Line
of Credit</B>&quot; on page 1 of the Loan Agreement, and by substituting in lieu thereof a reference to &quot;October 15, 2022&quot;.</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">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>By
deleting the paragraph beginning &ldquo;<B>Loan Base Report:</B>&rdquo; contained in <U>Section 3.08</U> of the Loan Agre